Research Article
The Effect of Local Government Fiscal Decentralization on Financial Reporting Accountability with Financial Performance as a Moderating Variable (Study of Regency and City Local Governments in North Sumatra in 2016-2020)
@INPROCEEDINGS{10.4108/eai.19-9-2023.2340521, author={Tiya Mardiyati Dalimunthe and Arfan Ikhsan and Andri Zainal}, title={The Effect of Local Government Fiscal Decentralization on Financial Reporting Accountability with Financial Performance as a Moderating Variable (Study of Regency and City Local Governments in North Sumatra in 2016-2020)}, proceedings={Proceedings of the 8th Annual International Seminar on Transformative Education and Educational Leadership, AISTEEL 2023, 19 September 2023, Medan, North Sumatera Province, Indonesia}, publisher={EAI}, proceedings_a={AISTEEL}, year={2023}, month={12}, keywords={fiscal decentralization fiscal independence dependence on central government financial reporting accountability financial performance}, doi={10.4108/eai.19-9-2023.2340521} }- Tiya Mardiyati Dalimunthe
Arfan Ikhsan
Andri Zainal
Year: 2023
The Effect of Local Government Fiscal Decentralization on Financial Reporting Accountability with Financial Performance as a Moderating Variable (Study of Regency and City Local Governments in North Sumatra in 2016-2020)
AISTEEL
EAI
DOI: 10.4108/eai.19-9-2023.2340521
Abstract
The implementation of fiscal decentralization in Indonesia has come a long way over the past two decades. This study aims to obtain empirical evidence about the effect of the implementation of fiscal decentralization on the accountability of local government financial reporting with financial performance as a moderating variable. Tests were carried out on 33 district and city regional governments in North Sumatra. This study uses the documentation method using secondary data obtained from the LHP (Inspection Report) of the BPK RI on LKPD (Local Government Financial Statements). The analytical test tools used are logistic regression and Moderate Regression Analysis (MRA). Fiscal independence has a significant negative effect on financial reporting accountability. Dependence on the central government has no significant effect on the accountability of financial reporting accountability. Performance finance can affect fiscal independence on financial reporting accountability but cannot moderate the effect of local government dependence on central government on financial reporting accountability.