The Effect of Financial Performance and Budget Ratcheting on Capital Expenditure Allocation in Districts/Cities of Central Java Province
Journal Title: Journal of Economics, Finance and Management Studies - Year 2024, Vol 7, Issue 02
Abstract
This study examines the effect of regional financial performance (effectiveness ratio, efficiency, fiscal decentralization) and budget ratcheting on the allocation of capital expenditure in local governments in Central Java Province from 2018-2021. The population in this study were all Regency/City Regional Governments in Central Java Province in 2018-2021. The sample used was 35 local governments. Hypothesis testing using panel data regression. The results showed that regional financial performance (effectiveness ratio, efficiency, fiscal decentralization) and budget ratcheting affect capital expenditure allocation. Effectiveness and efficiency ratios negatively affect capital expenditure allocation, fiscal decentralization ratio positively affects capital expenditure allocation, and budget ratcheting negatively affects capital expenditure allocation. This study provides empirical evidence that one of the tools to analyze regional financial performance in managing regional finances is to conduct a financial ratio analysis. The novelty of this research is the addition of budget ratcheting variables that have not been widely studied in Indonesia, especially those using local government objects.
Authors and Affiliations
1Fahtia Nur Hanifah, Jaka Winarna
Keywords
Related Articles
- EP ID EP730615
- DOI 10.47191/jefms/v7-i2-05
- Views 72
- Downloads 0
The Effect of Workload and Organisational Culture on Performance with Work Motivation as a Mediating Variable in Employees of Bank BSI KCP. Mataram Pejanggik 2
This study aims to determine and analyse the effect of workload and organisational culture on performance with work motivation as a mediating variable in employees of Bank BSI KCP Mataram Pejanggik 2. This research uses...
Impact of Corporate Social Responsibilities on Organizational Commitment at Processing Enterprises in Viet Nam
The study aimed to evaluate the aspects of social responsibility to the organizational cohesion of employees of processing enterprises in Hau Giang province, Vietnam. Data is collected from 196 working employees. The met...
The Influence of Advertising Creativity, Advertising Attractiveness, Endorser Credibility, and Advertising Effectiveness on Instagram on Purchase Decisions at Ilsproject Denpasar
Study This addressed For analyze influence creativity advertising, power pull advertising, endorser credibility, and effectiveness advertisement in influence decision purchase at Ilsproject Denpasar. Study This target po...
Customer Satisfaction with Customer Care Service Quality at Baoviet Life Corporation, Vietnam
Based on relevant theoretical bases and through conducting qualitative research to build a research model with a customer care service quality scale including 22 descriptive variables for 5 components of service quality....
The Effect of Market Orientation and the Quality of the Product on Marketing Performance with Innovation as Mediating Variable
This study aims to explore how product quality influences marketing performance, with product innovation acting as a mediating factor. The guitar makers in Serenan Sukoharjo made up the population and sample for this stu...