Determinants of Financial Reporting Quality: Evidence from Local Governments in Sumatera Island
This study aims to investigate determinants of financial reporting quality (FRQ) local government in Sumatera Islands, Indonesia. The FRQ local government is proxied by audit opinion from the Indonesian Supreme Audit Board (ISAB) for each local government sample. The tested independent variables are...
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| Format: | Article |
| Language: | English |
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Universitas Syiah Kuala
2024-03-01
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| Series: | Jurnal Dinamika Akuntansi dan Bisnis |
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| Online Access: | https://jurnal.usk.ac.id/JDAB/article/view/31788 |
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| author | Clara Aurelia Poppy Nurmayanti Ulfa Afifah Doddy Setiawan |
| author_facet | Clara Aurelia Poppy Nurmayanti Ulfa Afifah Doddy Setiawan |
| author_sort | Clara Aurelia |
| collection | DOAJ |
| description | This study aims to investigate determinants of financial reporting quality (FRQ) local government in Sumatera Islands, Indonesia. The FRQ local government is proxied by audit opinion from the Indonesian Supreme Audit Board (ISAB) for each local government sample. The tested independent variables are capital expenditure, characteristics of local governments (size, financial independency, and local government status), and mayor’s characteristics (experience and age). Data were obtained from the summary of semester audit results of ISAB, official website of the ministry of finance and the local governments in Sumatera Island. Total samples are 143 local governments and the period of study is 5 years (2016 – 2020, or 715 observations). Using the multinomial logistic regression, this study found that a lower ratio of capital expenditure, smaller local governments, local government in city areas, and local governments led by older and experienced mayor are associated with higher financial reporting quality. This study also uncovered that mayor education level and mayor graduated from the Institute of Public Administration (or IPDN) have positive influence of financial reporting quality of the local governments. |
| format | Article |
| id | doaj-art-c6477115afd94e63a020c894d54698d6 |
| institution | Kabale University |
| issn | 2355-9462 2528-1143 |
| language | English |
| publishDate | 2024-03-01 |
| publisher | Universitas Syiah Kuala |
| record_format | Article |
| series | Jurnal Dinamika Akuntansi dan Bisnis |
| spelling | doaj-art-c6477115afd94e63a020c894d54698d62025-01-03T22:17:43ZengUniversitas Syiah KualaJurnal Dinamika Akuntansi dan Bisnis2355-94622528-11432024-03-0111117519010.24815/jdab.v11i1.3178817897Determinants of Financial Reporting Quality: Evidence from Local Governments in Sumatera IslandClara Aurelia0Poppy Nurmayanti1Ulfa Afifah2Doddy SetiawanUniversitas RiauUniversitas RiauUniversitas RiauThis study aims to investigate determinants of financial reporting quality (FRQ) local government in Sumatera Islands, Indonesia. The FRQ local government is proxied by audit opinion from the Indonesian Supreme Audit Board (ISAB) for each local government sample. The tested independent variables are capital expenditure, characteristics of local governments (size, financial independency, and local government status), and mayor’s characteristics (experience and age). Data were obtained from the summary of semester audit results of ISAB, official website of the ministry of finance and the local governments in Sumatera Island. Total samples are 143 local governments and the period of study is 5 years (2016 – 2020, or 715 observations). Using the multinomial logistic regression, this study found that a lower ratio of capital expenditure, smaller local governments, local government in city areas, and local governments led by older and experienced mayor are associated with higher financial reporting quality. This study also uncovered that mayor education level and mayor graduated from the Institute of Public Administration (or IPDN) have positive influence of financial reporting quality of the local governments.https://jurnal.usk.ac.id/JDAB/article/view/31788capital expenditurefinancial reporting qualitylocal governmentmayor characteristics |
| spellingShingle | Clara Aurelia Poppy Nurmayanti Ulfa Afifah Doddy Setiawan Determinants of Financial Reporting Quality: Evidence from Local Governments in Sumatera Island Jurnal Dinamika Akuntansi dan Bisnis capital expenditure financial reporting quality local government mayor characteristics |
| title | Determinants of Financial Reporting Quality: Evidence from Local Governments in Sumatera Island |
| title_full | Determinants of Financial Reporting Quality: Evidence from Local Governments in Sumatera Island |
| title_fullStr | Determinants of Financial Reporting Quality: Evidence from Local Governments in Sumatera Island |
| title_full_unstemmed | Determinants of Financial Reporting Quality: Evidence from Local Governments in Sumatera Island |
| title_short | Determinants of Financial Reporting Quality: Evidence from Local Governments in Sumatera Island |
| title_sort | determinants of financial reporting quality evidence from local governments in sumatera island |
| topic | capital expenditure financial reporting quality local government mayor characteristics |
| url | https://jurnal.usk.ac.id/JDAB/article/view/31788 |
| work_keys_str_mv | AT claraaurelia determinantsoffinancialreportingqualityevidencefromlocalgovernmentsinsumateraisland AT poppynurmayanti determinantsoffinancialreportingqualityevidencefromlocalgovernmentsinsumateraisland AT ulfaafifah determinantsoffinancialreportingqualityevidencefromlocalgovernmentsinsumateraisland AT doddysetiawan determinantsoffinancialreportingqualityevidencefromlocalgovernmentsinsumateraisland |