The Effect of Local Revenue, Audit Opinions, and Capital Expenditures on Local Government Financial Performance South Sulawesi province Selatan 2022-2024

Hapipah Zahra Sirait; Eva Ulina Gultom; Salsabilah Salsabilah; An Suci Azzahra

doi:10.55227/ijerfa.v4i2.446

Authors

Hapipah Zahra Sirait Faculty of Social Sciences, Accounting Study Program, Universitas Pembangunan Panca Budi, Medan, Indonesia
Eva Ulina Gultom Faculty of Social Sciences, Accounting Study Program, Universitas Pembangunan Panca Budi, Medan, Indonesia
Salsabilah Salsabilah Faculty of Social Sciences, Accounting Study Program, Universitas Pembangunan Panca Budi, Medan, Indonesia
An Suci Azzahra Faculty of Social Sciences, Accounting Study Program, Universitas Pembangunan Panca Budi, Medan, Indonesia

DOI:

https://doi.org/10.55227/ijerfa.v4i2.446

Abstract

This study aims to determine and analyze the effect of local revenue, capital expenditure, and audit opinions on regional financial performance in districts/cities in South Sulawesi province. This study uses a quantitative method with a total sampling technique. The data processed is secondary data taken from the official website of the Directorate General of Fiscal Balance (DJPK) and the South Sulawesi Provincial Audit Agency for districts/cities in South Sulawesi Province for 2022-2024, with data testing conducted using multiple linear regression, using IBM SPSS version 26. The results showed that simultaneously, local revenue, capital expenditure, and audit opinion significantly affected financial performance with a coefficient of determination of 85.7%. However, local revenue partially had a positive and significant effect on local government financial performance, indicating that an increase in local resources strengthened fiscal independence. Capital expenditure had a negative and significant effect on local government financial performance, suggesting challenges in optimizing budget absorption for productive assets. and audit opinions have a positive but insignificant effect on the performance of regency and city governments in South Sulawesi province in 2022-2024, indicating that administrative achievements are not yet fully in line with improvements in regional fiscal reality.

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