PENGARUH PENDAPATAN ASLI DAERAH, DANA PERIMABANGAN DAN BELANJA MODAL TERHADAP KINERJA KEUANGAN PEMERINTAH DAERAH

Abstract

This research examines the effect of the local-owned source revenue, balanced funds, and capital expenditure on the financial performance of local governments. The local-owned source revenue was obtained from its revenue, balancing funds were measured by DAU, DAK, and DBH, and the capital expenditure was measured by expenditure listed on the Budget Realization report of East Java Province during2021-2023. The research applies quantitatively. Furthermore, the data were in the form of the Budget Realization report of East Java Province in 2021-2023. The data collection technique used was purposive sampling. In line with that, 38 districts/ cities with 3 years of observations were taken as samples. In total, there were 114 data samples. Moreover, the data analysis technique used was multiple linear regression with the instrument of the SPSS program. Also, it used classical assumptions including normality test, multicollinearity test, autocorrelation test, autocorrelation test, and heteroscedasticity test. The result indicates that the local-owned source revenue and balanced funds have a positive effect on the financial performance of local governments. However, the capital expenditure did not positively affect the financial performance of local governments.