PENGARUH BELANJA MODAL TERHADAP KINERJA KEUANGAN DENGAN PENDAPATAN ASLI DAERAH SEBAGAI INTERVENING

Abstract

This research aimed to examine the effect of capital expenditure on performance growth of local finance with Local-owned Source Revenue as intervening variable. While, performance growth of local finance was measured by local independence, local mobilization, fiscal decentralization grade, local finance dependance, local effectiveness and its growth ratio of Local-owned Source Revenue. The population was 29 districts and 9 cities in East Java. Moreover, the research was quantitative. Furthermore, the instrument used sensus. Additionally, the data were secondary which taken from Budget Realization Report of Local Budget during 2014-2018. In addition, the data analysis technique used Partial Least Square with significant rate of 5% and using WarpPls 6.0. The research result concluded capital expenditure had positive effect on Local-owned Source Revenue. Likewise, Local-owned Source Revenue had positive effect on performance growth of local finance. On the other, capital expenditure had negative effect on performance growth of local finance.
Keywords: capital expenditure, local-owned source revenue, finance performance, budget realization report