Key elements of local government transparency in new public governance
-
DOIhttp://dx.doi.org/10.21511/ppm.18(4).2020.09
-
Article InfoVolume 18 2020, Issue #4, pp. 96-106
- 1329 Views
-
404 Downloads
This work is licensed under a
Creative Commons Attribution 4.0 International License
Transparency is a challenge for public administration reforms for now and beyond towards modern and better governance. The economic crisis that occurred has led to a large erosion of public confidence in the effectiveness of government financial management. This study aims to analyze the key elements of local government transparency in new public governance. The research data was obtained through financial reports on local government websites. The sample selection technique used purposive judgment sampling and yielded a total of 262 local governments in Indonesia. The analytical method used is logistic regression analysis. The results showed that key elements, reflected by the local government size and local financial independence ratio, had a significant influence on the implementation of internet financial reporting, while audit opinions do not have a significant effect. This is due to changes in public perception of the quality of audit opinions provided by the Audit Board. This study emphasizes that local governments that receive a fair or unfair audit opinion cannot prove with certainty that the local government has performed good or poor financial management. Audit opinions obtained by local governments do not always facilitate the publication of financial statements on their official websites.
- Keywords
-
JEL Classification (Paper profile tab)H11, H83, P43, O32
-
References41
-
Tables10
-
Figures0
-
- Table 1. Sample selection summary
- Table 2. Description of variables in the regression equation model
- Table 3. IFLGR implementation frequency
- Table 4. Missing data identification test
- Table 5. Independent correlation matrix
- Table 6. Comparison of values between –2 LL initial and –2 LL final
- Table 7. Determination coefficient test
- Table 8. Hosmer and Lemeshow’s test results
- Table 9. Model accuracy test results
- Table 10. Variables in regression equations generated
-
- Acemoglu, D., Johnson, S., & Robinson, J. A. (2002). Reversal of Fortune: Geography and Institutions in the Making of the Modern World IncomeDistribution. The Quarterly Journal of Economics, 117(4), 231-1294.
- Adiputra, I. M. P., Utama, S., & Rossieta, H. (2018). Transparency of Local Government in Indonesia. Asian Journal of Accounting Research, 3(1), 123-138.
- Adriana, A., & Ritonga, I. T. (2018). Analysis of Local Financial Management Transparency Based on Websites on Local Government in Java. Jurnal Dinamika Akuntansi, 10(1), 13-26.
- Akrom, J., & Firmansyah, A. (2017). The Moderating Effect of Audit Opinion on The Local Government Financial Performances and The Disclosure Compliance of Financial Information. AFEBI Accounting Review, 2(2), 68-82.
- Annisa, R., & Murtini, H. (2018). The Determinant of Regional Financial Information Transparency on the Official Website of Local Government. Accounting Analysis Journal, 7(1), 43-51.
- Aronmwan, E. J., & Asiriuwa, O. (2018). Online Financial Disclosures in the Nigerian Public Sector. Journal of Perspectives on Financing and Regional Development, 5(4), 257-270.
- Bertot, J. C., Jaeger, P. T., & Grimes, J. M. (2010). Using ICTS to Create a Culture of Transparency: E-Government and Social Media as Openness and Anti-Corruption Tools for Societies. Government Information Quarterly, 27(3), 264-271.
- Chatterji, T. (2018). Digital Urbanism in a Transitional Economy – A Review of India’s Municipal E-Governance Policy. Journal of Asian Public Policy, 11(3), 1-16.
- Christiaens, J. (2002). Financial Accounting Reform in Flemish Municipalities: An Empirical Investigation. Financial Accountability and Management, 15(1), 21-40.
- Craven, B. M., & Marston, C. L. (1999). Financial Reporting on the Internet by Leading UK Companies. European Accounting Review, 8(2), 321-333.
- Del Sol, D. A. (2013). The Institutional, Economic and Social Determinants of Local Government Transparency. Journal of Economic Policy Reform, 16(1), 90-107.
- Dewata, E., Jauhari, H., Aprianti, S., & Hijria, E. N. (2018). The Effects of Local Government Characteristics and Audit Opinion on the Performance of District and City Governments in Indonesia. Jurnal Dinamika Akuntansi Dan Bisnis, 5(2), 151-162.
- Ellis, C. J., & Fender, J. (2006). Corruption and Transparency in a Growth Model. International Tax and Public Finance, 13(2), 115-149.
- Fadah, I., Kurniawati, A., & Titisari, P. (2017). Transparency and Accountability of Local Government by Internet Financial Reporting in Ex Besuki Residency. Accounting and Finance Review, 2(1), 31-37.
- Guillamón, M.-D., Bastida, F., & Benito, B. (2011). The Determinants of Local Government’s Financial Transparency. Local Government Studies, 37(4), 391-406.
- Jimoh, J., & Okoye, A. F. (2016). Voluntary Internet Financial Reporting in the Nigerian Public Sector. Igbinedion University Journal of Accounting, 2, 40-61.
- Johnsen, Å., Oulasvirta, L., Meklin, P., & Vakkuri, J. (2001). Performance Auditing in Local Government: An Exploratory Study of Perceived Efficiency of Municipal Value for Money Auditing in Finland and Norway. European Accounting Review, 10(3), 583-599.
- Jun, K.-N., Wang, F., & Wang, D. (2014). E-government Use and Perceived Government Transparency and Service Capacity: Evidence from a Chinese Local Government. Public Performance & Management Review, 38(1), 125-151.
- Junaidi, & Hartono, J. (2010). Non-Financial Factors in the Going-Concern Opinion. Journal of Indonesian Economy and Business, 25(3), 369-378.
- Kaufmann, D., & Kraay, A. (2002). Growth Without Governance (Policy Research Working Paper No. 2928). World Bank, Washington, DC.
- Laswad, F., Fisher, R., & Oyelere, P. (2005). Determinants of Voluntary Internet Financial Reporting by Local Government Authorities. Journal of Accounting and Public Policy, 24(2), 101-121.
- Lourenço, R. P. (2013). Open Government Portals Assessment: A Transparency for Accountability Perspective. Portugal.
- Martani, D., Fitriasari, D., & Annisa. (2014). Financial and Performance Transparency on the Local Government Website in Indonesia. Journal of Theoretical and Applied Information Technology, 60(3), 504-516.
- Ministry of Home Affairs of the Republic of Indonesia (Kemdagri RI). (n.d.). Official website.
- Nosihana, A., & Yaya, R. (2016). Internet Financial Reporting dan Faktor-Faktor yang Mempengaruhinya Pada Pemerintah Kota dan Kabupaten di Indonesia. Journal of Accounting and Business Dynamics, 3(2), 87-101.
- Pamungkas, B., Ibtida, R., & Avrian, C. (2018). Factors Influencing Audit Opinion of the Indonesian Municipal Governments’ Financial Statements. Cogent Business & Management, 5(1), 1-18.
- Perez, M. del C. C., Bolivar, M. P. R., & Hernandez, A. M. L. (2014). The Determinants of Government Financial Reports Online. Transylvanian Review of Administrative Sciences, 42, 5-31.
- Pina, V., Torres, L., & Royo, S. (2010). Is E-Government Leading to More Accountable and Transparent Local Governments? An Overall View. Financial Accountability & Management, 26(1), 3-20.
- Puspita, R., & Martani, D. (2013). Analisis Pengaruh Kinerja dan Karakteristik Pemda Terhadap Tingkat Pengungkapan dan Kualitas Informasi Dalam Website Pemda. Journal of Chemical Information and Modeling, 53(9), 1689-1699.
- Sargiacomo, M., & Gomes, D. (2011). Accounting and Accountability in Local Government: Contributions from Accounting History Research. Accounting History, 16(3), 253-290.
- Schick, A. (2003). The Performing State: Reflection on an Idea Whose Time Has Come but Whose Implementation Has Not. OECD Journal on Budgeting, 3(2), 71-103.
- Sharman, J. C., & Chaikin, D. (2009). Corruption and Anti-Money-Laundering Systems: Putting a Luxury Good to Work. Governance: An International Journal of Policy, Administration, and Institutions, 22(1), 27-45.
- Stephen, O. A., Bisi, O., Fo, I., & Charles, A. K. (2017). E-Governance and Public Sector Financial Disclosures: Analysis of Government Agencies in Nigeria. Journal of Internet Banking and Commerce, 24(3).
- Styles, A. K., & Tennyson, M. (2007). The Accessibility of Financial Reporting of U.S. Municipalities on the Internet. Journal of Public Budgeting, Accounting & Financial Management, 19(1), 56-92.
- Sutopo, B., Wulandari, T. R., Adiati, A. K., & Saputra, D. A. (2017). E-Government, Audit Opinion, and Performance of Local Government Administration in Indonesia. Australasian Accounting, Business and Finance Journal, 11(4), 6-22.
- Suwanda, D. (2015). Factors Affecting Quality of Local Government Financial Statements to Get Unqualified Opinion (WTP) of Audit Board of the Republic of Indonesia (BPK). Research Journal of Finance and Accounting, 6(4), 139-157.
- The Audit Board of the Republic of Indonesia (BPK RI). (n.d.). Official website.
- Waheduzzaman, W. (2019). Challenges in Transitioning from New Public Management to New Public Governance in a Developing Country Context. International Journal of Public Sector Management, 32(7), 689-705.
- Warsidi, Rizkiyaningsih, W., Rusmana, O., & Sukirman. (2017). Determinants of Internet Financial Reporting in Indonesian Local Governments. Soedirman Accounting Review, 2(1), 101-113.
- Wiwoho, L. H. (2014). Tren Korupsi Naik Lagi. Kompas.
- Yusuf, J.-E., & Jordan, M. M. (2015). Popular Financial Reports: Tools for Transparency, Accountability and Citizen Engagement. Journal of Government Financial Management, 64(1), 12-17.