PENGARUH KARAKTERISTIK PEMERINTAH DAERAH TERHADAP EFISIENSI KINERJA KEUANGAN PEMERINTAH DAERAH

Abstract

This research is meant to test the influence of the characteristic of the local government which is proxy by the
size of local government, prosperity, the dependence level on central government, leverage, and local expenditure
to the financial performance of the local government based on the performance efficiency ratio. The population is
all cities/districts local government in East Java Province in 2013-2015 periods. The sample collection technique
has been carried out by using purposive sampling method and based on the predetermined criteria so 35
cities/districts have been selected as samples. The secondary data has been carried out by using LKPD from the
Audit Board of the Republic of Indonesia (BPK) East Java Province Representative. The analysis technique has
been carried out by using multiple linear regressions analysis. The data examination has been carried out by
using SPSS software 23.0 version. The result of R2 test shows that the independent variable is 35,5% and is
64,5% has been influenced by other variables which are not included in the research. The result of t test shows
that prosperity and local expenditure has positive influence to the financial performance of local government
based on the performance efficiency ratio whereas the size of local government size, the dependence level on
central government, and leverage do not have any influence to the financial performance of local government
based on the performance efficiency ratio.
Keywords: The characteristics of local government, financial performance of local government, performance
efficiency.