DETERMINANTS OF REGIONAL GOVERNMENT CHARACTERISTICS, AUDIT FINDINGS AND AUDIT OPINIONS ON REGIONAL GOVERNMENT PERFORMANCE

Abstract

The purpose of this study is to analyze the factors that influence the performance of local governments. These factors include local government characteristics, audit findings, audit opinions, regional wealth (PAD), the level of dependence on the central government (DAU), capital expenditure, and leverage. The population in this study comprises all provincial governments in Indonesia in 2023. The sample was selected using a purposive sampling method, resulting in 38 provinces as research samples. The analytical technique employed is multiple linear regression to examine the effect of independent variables on the dependent variable. The t-test was used to assess partial effects, while the coefficient of determination test measured the explanatory power of the independent variables on the dependent variable. The results of the study indicate that audit findings, audit opinion, regional wealth, dependence on the central government, and leverage do not significantly affect the performance of regional governments. However, capital expenditure has a negative effect on regional government performance.