Proceedings of the 6th International Accounting Conference (IAC 2017)

Determinants of Local Government Performance in Indonesia

Authors
Dyah Setyaningrum, Dwi Martani
Corresponding Author
Dyah Setyaningrum
Available Online August 2017.
DOI
https://doi.org/10.2991/iac-17.2018.2How to use a DOI?
Keywords
Institutional Incentives, Legitimacy, Local Government Performance, Management Incentive, Monitoring, Organizational Commitment
Abstract
The purpose of this study is to analyze the determinants of the performance of local governments in Indonesia. We hypothesize that organizational commitment, management incentives, monitoring, legitimacy, and institutional incentives have positive effects on local government performance. Organizational commitment is measured by follow-up of all audit recommendations and the number of audit findings, while intergovernmental revenue and proportion of non-routine expenditure is used to measure management incentives. Monitoring is measured by political competition and legislature size. Number of voters is used to measure size, while size and wealth of local government is used as the proxy for institutional incentives. Unit analysis of this study is local governments in Indonesia from 2009??"2012. The results show that follow-up of audit recommendations, level of dependency, proportion of non-routine expenditure, number of legislature members, number of voters and local government wealth have positive effects on the performance of local governments. Based on these results, local governments should increase their commitment to follow-up of all audit recommendations and increase their proportion of non-routine expenditure and own-source revenue in order to improve performance. The legislative board can contribute to improved performance by performing effective monitoring.
Open Access
This is an open access article distributed under the CC BY-NC license.

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Proceedings
6th International Accounting Conference (IAC 2017)
Part of series
Advances in Economics, Business and Management Research
Publication Date
August 2017
ISBN
978-94-6252-519-1
ISSN
2352-5428
DOI
https://doi.org/10.2991/iac-17.2018.2How to use a DOI?
Open Access
This is an open access article distributed under the CC BY-NC license.

Cite this article

TY  - CONF
AU  - Dyah Setyaningrum
AU  - Dwi Martani
PY  - 2017/08
DA  - 2017/08
TI  - Determinants of Local Government Performance in Indonesia
BT  - 6th International Accounting Conference (IAC 2017)
PB  - Atlantis Press
SP  - 7
EP  - 12
SN  - 2352-5428
UR  - https://doi.org/10.2991/iac-17.2018.2
DO  - https://doi.org/10.2991/iac-17.2018.2
ID  - Setyaningrum2017/08
ER  -