PENGARUH LEVERAGE, DANA PERIMBANGAN, DAN BELANJA MODAL TERHADAP KINERJA KEUANGAN PEMERINTAH DAERAH

Abstract

Local government financial performance is one of the considerations used in order to find out how the government runs its autonomy. Therefore, there are some factors which affect its performance, i.e leverage, fiscal balance fund, and capital ecpenditure. This research aimed to find out how leverage which was referred to Debt to Equity Ratio, fiscal balance fund, and capital expenditure affected local government financial performance of districts/cities in East Java province during 2016-2019. The research was descriptive-qualitative, with its object through data or collected samples. Moreover, the data collection technique used purposive sampling, in which the sample was based on criteria given, In line with, there were 35 districts/cities in East Java province as the sample. Furthermore, the data were secondary in the form of Budget Realization Report and Balance Sheet durung 2016-2019. Additionally, the data analysis technique used multiple liniear regression with SPSS 25. The research result concluded that leverage as well as capital expenditure did not affect local government financial performance. On the other hand, fiscal balance fund had a positive and significant effect on local goverment financial performance.
Keywords: leverage, fiscal balance fund, capital expenditure, local government financial performance