The Influence of Financial Performance to The Level of Accountability Disclosure of Indonesia’s Local Government

Citra Perwira Sari


The purpose of the study is gaining empirical evidence related to the influence of financial performance, which represent in profitability ratios, current ratio, capital structure ratio and efficiency ratio, to the level of accountability disclosure of Indonesia’s local government that represented in modified LGA index.Size represented in the logarithm total assets. Furthermore, related to the purpose of the research, the writer uses population from all regencies/municipalities that issued the local governmental financial statement and publicized in the website of Indonesian Financial Inspector Bureau, (BPK RI) at in 2005, 2006 and 2007.The method used in the study is purposive sampling method then getting 119 regencies/municipalities in 2005, 82 regencies/municipalities in 2006 and 103 regencies/municipalities in 2007, therefore the total observation used in the study is 304. The data analyses tool used in the research is multipleregressions then it uses SPSS version 17.00 computer software for statistic.

The study resulted that profitability (only PM), capital structure (DER and LTTA),and efficiency ratios (only OROE), giving a significant influence to the level of accountability disclosure of Indonesia’s Local Government. While others does not give. Sizeis also a variable that significantly influence the level of accountability disclosure of Indonesia’s local government.

The limitation of the study arises when the other non-financial measurement are omitted in the study. The subjectivity of respondent also becomesanother consideration in doing a future research.


Jurnal Akuntansi dan Bisnis (JAB)
ISSN 1412-0852 (print), 2580-5444 (online)
Published by Accounting Study Program, Faculty of Economics and Business, Universitas Sebelas Maret, Indonesia

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