Proceedings of the 3rd International Conference on Banking, Accounting, Management and Economics (ICOBAME 2020)

<Previous Article In Volume
Next Article In Volume>

The Effect of Financial Conditions and Audit Opinions on Local Government Performance

Authors
Handoko Arwi Hasthoro, Yanuar Saksono, Nining Widiyanti
Corresponding Author
Handoko Arwi Hasthoro
Available Online 13 March 2021.
DOI
10.2991/aebmr.k.210311.018How to use a DOI?
Keywords
performance, local government, financial condition, audit opinions
Abstract

This study aims to determine the effect of financial conditions and audit opinion on the performance of local governments in Indonesia. Financial condition is proxied by financial flexibility and audit opinion is measured using the opinion issued by the Supreme Audit Agency (BPK). The Regional Government Performance Variable is measured by the performance evaluation score of regional government administration made by the Ministry of Home Affairs of the Republic of Indonesia in 2018. Thirty-three provincial governments whose financial reports have been audited in 2018 will be used as samples. The method for testing the effect uses multiple linear regression with a probability value of 5%. The test results show that financial conditions have a positive effect on local government performance with a p-value of 0.0853 (significant at the 10% level). Audit opinion also has a positive effect on local government performance with a p-value of 0.0090 (significant at the 5% level). This proves that a good financial condition accompanied by good financial management will be able to improve the performance of local governments.

Copyright
© 2021, the Authors. Published by Atlantis Press.
Open Access
This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

Download article (PDF)

<Previous Article In Volume
Next Article In Volume>
Volume Title
Proceedings of the 3rd International Conference on Banking, Accounting, Management and Economics (ICOBAME 2020)
Series
Advances in Economics, Business and Management Research
Publication Date
13 March 2021
ISBN
10.2991/aebmr.k.210311.018
ISSN
2352-5428
DOI
10.2991/aebmr.k.210311.018How to use a DOI?
Copyright
© 2021, the Authors. Published by Atlantis Press.
Open Access
This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

Cite this article

risenwbib
TY  - CONF
AU  - Handoko Arwi Hasthoro
AU  - Yanuar Saksono
AU  - Nining Widiyanti
PY  - 2021
DA  - 2021/03/13
TI  - The Effect of Financial Conditions and Audit Opinions on Local Government Performance
BT  - Proceedings of the 3rd International Conference on Banking, Accounting, Management and Economics (ICOBAME 2020)
PB  - Atlantis Press
SP  - 91
EP  - 95
SN  - 2352-5428
UR  - https://doi.org/10.2991/aebmr.k.210311.018
DO  - 10.2991/aebmr.k.210311.018
ID  - Hasthoro2021
ER  -