The effect of regional original income and balance funding on regional government financial performance

Noor Farieda Awwaliyah*  -  Universitas Islam Negeri Walisongo Semarang, Indonesia
Ratno Agriyanto  -  Universitas Islam Negeri Walisongo Semarang, Indonesia
Dessy Noor Farida  -  Universitas Islam Negeri Walisongo Semarang, Indonesia

(*) Corresponding Author
DOI: 10.21580/jiafr.2019.1.1.3745

Purpose - The purpose of the research was to determine the effect of local revenue and intergovernmental revenue on the financial performance of local government.

Method - This research used Stewardship Theory. The method used is quantitative research method. The method of data analysis used is multiple linear regression analysis. This research used secondary data. The population in this research is the Regency in Central Java which consists of 29 regencies and 6 cities.

Result - The results showed that first, local revenue had positive effect on financial performance of local government. Second, intergovernmental revenue had positive effect on financial performance of local government. Third, local revenue and intergovernmental revenue together had influence on financial performance of local government.

Implication - The practical implication of this research is that the Regency Governments in Central Java  are expected to reduce dependence on the central government by optimizing the potential of existing income sources to be able to further improve their financial performance.

Originality - An originality of research is focused on two  variables; regional original income and intergovernmental revenue and uses the measurement of independence index for the dependent variable. financing.

Keywords: local revenue; intergovernmental revenue; financial performance of local government

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Journal of Islamic Accounting and Finance Research
Published by Department of Sharia Accounting, Faculty of Islamic Economics and Business, Universitas Islam Negeri Walisongo Semarang, Indonesia
Jl Prof. Dr. Hamka Kampus III Ngaliyan Semarang 50185
Phone: +62 852-2589-5726
Website: https://febi.walisongo.ac.id/
Email: jiafr@walisongo.ac.id

ISSN: 2715-0429 (Print)
ISSN: 2714-8122 (Online)

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