PENGARUH KINERJA KEUANGAN DAERAH TERHADAP BELANJA MODAL PADA KABUPATEN/KOTA DI PROVINSI JAWA TIMUR

Abstract

This research aimed to analyze and examine the effect of financial performance on capital expenditure of East Java province based on efficiency, effectiveness, growth of Local-owned Source Revenue and Fiscal Decentralization ratio. In other words, it aimed to find out the measurement of the above variables which affected financial performance of cities/districts at East Java province. The population was 38 districts/cities in East Java province. Moreover, the data collection technique used purposive sampling. Furthermore, the data were secondary,in form of Budget Realization Report which taken from Financial and Asset Management Board of East Java province during 2016-2018. In line with, there were 32 districts/cities as sample. Additionally, the data analysis technique used multiple linear regression with significance level of 0,05 and was arranged using SPSS. Based on hypothesis test, it concluded had positive and significant effect on capital expenditure. Likewise, the growth of Local-owned Source Revenue had positive but insignificant effect on capital expenditure. Beside, fiscal decentralization had positive and significant effect on capital expenditure.
Keywords: growth of local-owned source revenue, fiscal decentralization, financial performance, capital expenditure