PENGARUH LEVERAGE, UKURAN PEMERINTAHAN DAERAH, DAN DANA PERIMBANGAN TERHADAP KINERJA KEUANGAN PEMERINTAH DAERAH JAWA TIMUR

Abstract

This research aimed to find out: (1) Effect of leverage which was reffered to Debt to Equity Ratio (DER) on Local Government financial statements performance, (2) Effect of Local Government Size on Local Government financial statements performance, (3) Effect of fiscal balance fund on Local Government financial statements performance of district and cities in East Java Province 2016-2020 using independence ratio. The research was descriptive-quantitative, in which applied to have research or samples and to describe objects from collected data. Moreover, the data collection technique used purposive sampling with 25 districts or cities in East Java Province fulfilled the criteria given. Furthermore, the data were secondary in form of budget realization report and balance sheet 2016-2020. Additionally, the data analysis technique used multiple linear regression with SPSS 26. The research result concluded that: (1) leverage had a positive effect on Local Government financial statements performance, (2) Local Government Size had a positive effect on Local Government financial statements performance,(3) Fiscal Balance Fund had a positive effect on Local Government financial statements performance.
Keywords: leverage, local government size, fiscal balance fund, local government financial statements