Riset Akuntansi dan Keuangan Indonesia
Vol. 8 No. 3 (2023): Riset Akuntansi dan Keuangan Indonesia

What Determines Financial Sustainability in Local Government? Evidence from Aceh Province, Indonesia

Syahriyal, Syahriyal (Unknown)
Abdullah, Syukriy (Unknown)
Meutia, Rita (Unknown)



Article Info

Publish Date
15 Jan 2024

Abstract

This research aims to determine the influence of financial independence, budget solvency, service solvency, population, and GRDP on local government financial sustainability. The results of this research are important to provide input for local governments in arranging appropriate policies to encourage financial sustainability. This research was conducted on 23 regional governments in Aceh by using the panel data regression analysis method with the assistance of the Eviews 12 version. The data was taken from the audited financial reports of regional governments in the 2017-2021 period. This research employed income surpluses in operational reports to measure regional government financial sustainability. The research results show that financial independence has no effect on financial sustainability, but budget solvency and service solvency have a significant positive effect. In contrast, population and GRDP have a negative effect on financial sustainability.

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Journal Info

Abbrev

reaksi

Publisher

Subject

Economics, Econometrics & Finance

Description

Research in Accounting and Finance Indonesia focusing on various themes, topics, and the accounting and financial aspects, including (but not limited) to the following topics: Public sector accounting Management accounting Islamic accounting Financial management Auditing Corporate Governance ...