<![CDATA[This research is carried out in order to obtain empirical evidence relating the influence of revenue, expenditure, real estate, capital, taxes and grants to the financial performance of local government in Indonesia which is indicated by current ratio, debt to equity ratio, asset turnover and operating revenue to total revenue and operating revenue to operating expense. This research uses the entire population of local government districts throughout Indonesia with the sample chosen by purposive sampling method. This research uses a sample of 304 local governments. This research used a multiple regression analysis. Principal component conducted to determine a measure of financial performance over the five performance measures used in this research. In a multiple regression test, the results of this research showed empirical evidence that the revenue variables affect the financial performance of local government in Indonesia. But, the expenditure variable, real estate, capital, taxes and grants give no effect on the financial performance of local governments in Indonesia.This research concludes that revenues affect to financial performance of local government in Indonesia.]]>
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