PENGARUH PENDAPATAN ASLI DAERAH DAN BELANJA MODAL TERHADAP KINERJA KEUANGAN PEMERINTAH KABUPATEN DAN KOTA DI PROVINSI SUMATERA BARAT

Abstract

The study aims to examine the effect of Regional Income and Capital Expenditure on financial performance of Local and City governments in the province of West Sumatra. This study uses secondary data that is Budgets Realization Report of Local and City in the province of West Sumatra, the period 2012-2015. The sample used in this study are 19 Local and Cities by using purposive sampling method. The method used is multiple regression analysis. Statistical analysis used are (1) the descriptive statistics test (2) the classical assumption test, which consists of normality test, multicollinearity, heteroscedasticity and autocorrelation test, (3) the hypothesis test, which consists of a test coefficient of determination (R²), the test simultaneous hypothesis (F-test), and partial hypothesis test (t-test).

       Based on the results of the study concludes that the regional income shows positive significant effect on the financial performance, meaning the higher the Regional Revenue the more increased the possibility of improved financial performance. Mean while variable capital expenditure proves a significant effect on financial performance.

Keywords: Regional Income, Capital Expenditure, Financial Performance of Government