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Analysis of factors affecting capital expenditures and their implications on government financial performance provinces in Indonesia 2011-2019

Author

Listed:
  • Mega Riandini Arsallya

    (University of Sriwijaya)

  • Azwardi Azward

    (Department of Economics, Universitas Sriwijaya, Indonesia)

  • Yusnaini Yusnaini

    (Department of Economics, Universitas Sriwijaya, Indonesia)

Abstract

The purpose of this research aims to determine the impact of Local Own Revenue, Balanced Funds, Economic Growth, and Excess of Budget Calculation (SiLPA) on Capital Expenditure as long as the implications to provincial government financial performance in Indonesia from 2011 to 2019. The province government financial reports from across Indonesia as population and in 2011 to 2019 as samples. This type of research is known as causal associative research, with quantitative descriptive analysis techniques, and Panel Data Regression Analysis with The Random Effect Model as the selected model, with secondary data including time-series data and panel data in 2011 to 2019 from The Supreme Audit Agency of the Republic of Indonesia, the Central Bureau of Statistics, and other official publications. According to the research results, R2 was 79.08%. Partially Local Own Revenue had a positive value and did not affect Capital Expenditure. Balanced Funds, Economic Growth, and Excess of Budget Calculation had positive values and an effect on Capital Expenditures. Simultaneously, Local Own Revenue, Balanced Funds, Economic Growth, and Excess of Budget Calculation affect Capital Expenditure. Then Local Own Revenue, Balanced Funds, Economic Growth, Excess of Budget Calculation and Capital Expenditures simultaneously did not affect Financial Performance. Key Words:Revenue, Balanced, Growth, SiLPA, Expenditures, and Performance

Suggested Citation

  • Mega Riandini Arsallya & Azwardi Azward & Yusnaini Yusnaini, 2021. "Analysis of factors affecting capital expenditures and their implications on government financial performance provinces in Indonesia 2011-2019," International Journal of Research in Business and Social Science (2147-4478), Center for the Strategic Studies in Business and Finance, vol. 10(5), pages 95-106, July.
    • Handle: RePEc:rbs:ijbrss:v:10:y:2021:i:5:p:95-106
    DOI: 10.20525/ijrbs.v10i5.1195
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