Abstract:
Lina Dwi Astuti. 2022. The Effect of capital expenditure, balancing funds, and
local own-source revenue on the Financial Performance of local governments in
regencies/cities, South Sulawesi Province, supervised by Masdar Masud and Sylvia
Sjarlis.
This study aims to determine and analyze: the effect of capital expenditure,
balancing funds, and local own-source revenue on the Financial Performance of
Local Governments in regencies/cities, South Sulawesi Province.
This research approach uses hypothesis testing with a aapproach pooled
cross-section time series. The research was conducted on local governments in
regencies/cities, South Sulawesi Province. The research was conducted in 2021.
The research population is all local governments in regencies/cities, South
Sulawesi Province, totaling 24 local governments. The sample selection in this
research was carried out using a saturated sample which is population was
analyzed as the sample, so the research object was 24 regencies/cities. The data
used are 24 regencies/cities for the period 2018 to 2020 which amounted to 72 data.
Data analysis conduct used multiple linear regression models with SPSS (Statistical
Product and Service Solution) version 26. The data used in this research was
secondary data sourced from the audited local government financial reports by the
BPK.
The results showed that: 1) There is a positive but not significant effect of
capital expenditure on the financial performance of local governments in
regencies/cities, South Sulawesi Province with a value of Sig. of 0,808 > 0,05 and
the value of tarithmetic 0,244 < ttable 1,995. 2) There is a negative and significant effect
of balancing funds on the financial performance of local governments in
regencies/cities, South Sulawesi Province with a value of Sig. of 0,000 < 0,05 and
the value of tarithmetic -5,738 > ttable 1,995. 3) There is a positive and significant effect
of local own-source revenue on the financial performance of local governments in
regencies/cities, South Sulawesi Province with a value of Sig. of 0,000 < 0.05 and
the value of tarithmetic 15,775 > ttable 1,995.
