PENGARUH PENDAPATAN ASLI DAERAH, DANA PERIMBANGAN DAN PERTUMBUHAN EKONOMI TERHADAP KINERJA KEUANGAN PEMERINTAH KABUPATEN/KOTA DI PROVINSI JAWA TIMUR

Abstract

To achieve regional independence, local governments must be able to manage their resources efficiently and effectively. It can be realized by decentralization policy through regional autonomy. This research aims to test the influence of PAD, balancing fund and economic growth on financial performance of district/city government in East Java province. The scope used in this research is the realization report of the District government's APBD/city in East Java province year 2015 – 2017, especially emphasizing on PAD variables, balance fund, economic growth, capital expenditure and financial performance. Analyses and hypotheses were conducted using SPSS 24 programs. Data analysis methods on hypothesis testing using multiple linear regression analyses. The results showed that (1) PAD has a significant positive effect on financial performance which means the increase in PAD will increase the financial performance of district/city government in East Java Province, (2) Balancing fund negatively affect Significant impact on financial performance which means the increase of the balancing fund will lower the financial performance of the Regency/city government in East Java Province, (3) Economic growth has no significant effect on financial performance which means Increase in the economic growth of an area, not always followed by the increase in financial performance of the District government/city in East Java and (4) capital expenditure is not significant to the financial performance which means capital expenditure Increase in an area, not necessarily increase the financial performance of the local government in a short period of time.

Key words: Original Regional Income, balancing fund, economic growth, capital expenditure, financial performance