Analysis of potential factors of financial statement disclosure: Evidence from Indonesian local government
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DOIhttp://dx.doi.org/10.21511/imfi.20(1).2023.04
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Article InfoVolume 20 2023, Issue #1, pp. 38-47
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This study explores the relationship between the number of local parliamentarians, local government budget expenditures, Java/non-Java jurisdiction, liabilities, and Local Own-source revenue and financial statement disclosure. It relies on multiple theoretical frameworks and uses a sample of 180 local government financial reports in Indonesia for 2021 that have been audited by the Indonesian National Audit Board. Using the SPSS Version 25 program, multiple regression analysis was used in this study to assess hypotheses. The results found that Java/non-Java jurisdiction (β = 0.259; p < 0.05) and Local Own-source revenue (β = 0.321; p < 0.05) affect the disclosure of financial statements. In addition, the number of local parliamentarians (β = 0.071; p > 0.05), local government budget expenditure (β = 0.038; p > 0.05), and liability (β = 0.005; p > 0.05) does not affect the disclosure of financial statements. The contribution to local government is to analyze potential aspects related to the government’s increased pressure to make financial statement disclosure. The use of information technology to meet social demands more effectively and efficiently is one option for regional governments to disclose their financial statements.
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JEL Classification (Paper profile tab)G18, H83, M41, M48
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References48
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Tables4
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Figures0
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- Table 1. Final sample summary
- Table 2. Variable measurement
- Table 3. Independent variable in descriptive statistics
- Table 4. Multiple regression results
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