Research Article
The Impact of Supervision of Government Internal Control Apparatus (APIP) on The Financial Performance of Local Governments in Indonesia
@INPROCEEDINGS{10.4108/eai.14-8-2024.2351628, author={Moh. Syaifullah and Masruddin Masruddin and Andi Chairil Furqan and Megawati Megawati}, title={The Impact of Supervision of Government Internal Control Apparatus (APIP) on The Financial Performance of Local Governments in Indonesia}, proceedings={Proceedings of the 4th International Conference on Business, Accounting, and Economics, ICBAE 2024, 14-15 August 2024, Purwokerto, Indonesia}, publisher={EAI}, proceedings_a={ICBAE}, year={2024}, month={11}, keywords={internal control financial performance local government fiscal independence financial flexibility service solvency}, doi={10.4108/eai.14-8-2024.2351628} }- Moh. Syaifullah
Masruddin Masruddin
Andi Chairil Furqan
Megawati Megawati
Year: 2024
The Impact of Supervision of Government Internal Control Apparatus (APIP) on The Financial Performance of Local Governments in Indonesia
ICBAE
EAI
DOI: 10.4108/eai.14-8-2024.2351628
Abstract
The financial performance of an organization, be it public or private, is a critical indicator for evaluating its sustainability. This study aims to investigate the extent to which the capacity of the Government Internal Supervisory Apparatus (APIP) affects the financial performance of local governments in Indonesia. The analysis uses data from 542 local governments, including provinces, districts, and cities, employing a purposive sampling method with a final sample of 2,710 observations. The results shows that APIP considerably influences financial performance, specifically in the areas of fiscal independence, financial flexibility, and service solvency. The implications of this research emphasize the necessity of enhancing APIP's capabilities to encourage improved governance, particularly in local financial management. Nonetheless, this study is constrained by its dependence on secondary data and the variability present in regional data, which may limit the generalizability of the results. Therefore, future research should explore wider datasets and incorporate additional variables to provide a more comprehensive understanding of APIP's role in regional financial performance.
