Citations


Contact Us

For Marketing, Sales and Subscriptions Inquiries
2637 E Atlantic Blvd #43110
Pompano Beach, FL 33062
USA

Conference List

Humanities and Social Sciences Letters

June 2020, Volume 8, 2, pp 145-155

Determinants of Transparency in Financial Management on Local Government Websites: Evidence from Indonesia

Nuryani .

,

Amrie Firmansyah

Nuryani . 1 Amrie Firmansyah 1 ,
;

  1. Department of Accounting, Polytechnic of State Finance STAN, South Tangerang, Banten, Indonesia. 1

Pages: 145-155

DOI: 10.18488/journal.73.2020.82.145.155

Share :

Article History:

Received: 11 December, 2019
Revised: 31 January, 2020
Accepted: 06 March, 2020
Published: 17 March, 2020


Abstract:

This study aimed to examine the determinants of transparency in financial management on local government websites in Indonesia. The level of transparency was measured at each stage of local government finance: planning, implementation, and reporting and accountability, using internal, local government characteristics, and external, community conditions, factors of influence. The internal factor was represented by local government size, expenditure, and dependence, while community welfare was adopted for the external factor. The study was designed as quantitative research based on a multiple linear regression model. The study sample of 424 observations was selected from the district/city governments in Java that met the criteria of having an official and accessible website, as well as completes financial data from 2013 to 2016. The results suggested that the average level of transparency in financial management on these local government websites over the four-year period was 24.76%. In addition, both the size and expenditure of the selected local governments were positively associated with their transparency levels, while no association was shown with the levels of both dependence and community welfare. The conclusions drawn offer suggestions on how central government can encourage regional financial transparency in their policies and for local governments in increasing their commitment to implementing transparency.
Contribution/ Originality
This study contributes to the current literature on transparency in regional financial management by covering more than one fiscal year—2013 to 2016—and illustrating how local government size and expenditure play a role in increasing the level of transparency.

Keywords:

Financial transparency, Local government size, Local government expenditure, Local government dependency, Community welfare, Local government.

Video:

Reference:

Adriana, A. and I.T. Ritonga, 2018. Analysis of local financial management transparency based on websites on local government in Java. Journal of Accounting Dynamics, 10(1): 13-26.Available at: https://doi.org/10.15294/jda.v10i1.12558.

Arkhelaus, W., 2017. Community participation in APBD control is still low. Available from https://nasional.tempo.co/read/856726/fitra-pParticipation-masyarakat-in-kontrol-apbd-masih-rendah/full&view=ok [Accessed December, 28th, 2018].

Batafor, G.G., 2011. Evaluation of financial performance and welfare level of Lembata District - NTT Province. Thesis. Denpasar: Udayana University.

BKF, 2017. 2017 etudy report improving the effectiveness of the DAU's role in equitable regional financial capability. Jakarta: Ministry of Finance of the Republic of Indonesia.

Chusna, F.N., 2016. Determinant of the level of disclosure of regional budget management information on the local government website. Thesis. Bandar Lampung: University of Lampung.

CUI-ITB, 2004. The linkage of accountability and transparency in achieving good governance. Journal of Regional and City Planning, 15(1): 34-47.

Fiscal Policy Agency (BKF), 2017. 2017 etudy report improving the effectiveness of the DAU's role in equitable regional financial capability. Jakarta: Ministry of Finance of the Republic of Indonesia.

Florini, A.M., 2007. The battle over transparency: Transparency for an open world. New York: Columbia University Press.

García, A.C. and J. García-García, 2010. Determinants of online reporting of accounting information by Spanish local government authorities. Local Government Studies, 36(5): 679-695.Available at: https://doi.org/10.1080/03003930.2010.506980.

Ghozali, I., 2016. Multivariate analysis application with the SPSS program. Semarang: Dipenogoro University Publishing Board.

Giroux, G. and A.J. McLelland, 2003. Governance structures and accounting at large municipalities. Journal of Accounting and Public Policy, 22(3): 203-230.Available at: https://doi.org/10.1016/s0278-4254(03)00020-6.

Greiling, D. and K. Spraul, 2010. Accountability and the challenges of information disclosure. Public Administration Quarterly, 34(3): 338-377.

Hadi, A., L. Handajani and I.N.N.A. Putra, 2018. Financial disclosure based on web-ICT determinants: Its implications for local government financial performance in Indonesia. International Research Journal of Management, IT and Social Sciences, 5(1): 72-85.Available at: https://doi.org/10.21744/irjmis.v5i1.598.

Hidayat, A., 2011. Political analysis of legal community participation in the local budgeting system in Indonesia after the reform. Pandecta, 6(1): 26-39.

Huawei, K., 2016. Analysis of the level of disclosure of regional financial management information (study in Yogyakarta Special Province). Thesis. Yogyakarta: Gadjah Mada University.

Ingram, R.W., 1984. Economic incentives and the choice of state government accounting practices. Journal of Accounting Research, 22(1): 126-144.Available at: https://doi.org/10.2307/2490704.

Janssen, M., Y. Charalabidis and A. Zuiderwijk, 2012. Benefits, adoption barriers and myths of open data and open government. Information Systems Management, 29(4): 258-268.Available at: https://doi.org/10.1080/10580530.2012.716740.

Kuswandi, 2018. Available from https://www.jawapos.com/nasional/hukum-kriminal/20/02/2018/kepala-daerah-paling-banyak-korupsi-apbd [Accessed September 22nd, 2018].

Mardiasmo, 2004. Regional autonomy and financial management. Yogyakarta: Andi.

Medina, F., 2012. Factors that influence the transparency of financial information on the official website of the local government. Thesis. Depok: University of Indonesia.

Nainggolan, A.T. and D.D. Purwanti, 2016. Analysis of factors that influence transparency of regional financial information via the website. 9th National Accounting Symposium, Lampung, 24-27 August 2016.

Park, H. and J. Blenkinsopp, 2011. The roles of transparency and trust in the relationship between corruption and citizen satisfaction. International Review of Administrative Sciences, 77(2): 254–274.Available at: https://doi.org/10.1177/0020852311399230.

Puspita, R. and D. Martani, 2012. Analysis of the effect of regional government performance and characteristics on the level of disclosure and quality of information on the regional government website. 15th National Accounting Symposium, Banjarmasin, 20-23 September 2012.

Robbins, W.A. and K.R. Austin, 1986. Disclosure quality in governmental financial reports: An assessment of the appropriateness of a compound measure. Journal of Accounting Research, 24(5): 412-421.Available at: https://doi.org/10.2307/2491145.

Rodríguez, B.M.P., M.L. Alcaide and H.A.M. López, 2013. Determinants of financial transparency in government. International Public Management Journal, 16(4): 557-602.Available at: https://doi.org/10.1080/10967494.2013.849169.

Scholastica, G., 2018. Available from https://tirto.id/dalam-13-tahun-56-kepala-daerah-jadi-terpidana-korupsi-cHDy [Accessed September 22nd, 2018].

Serrano-Cinca, C., M. Rueda-Tomás and P. Portillo-Tarragona, 2009. Factors influencing e-disclosure in local public administrations. Environment and Planning C: Government and Policy, 27(2): 355-378.Available at: https://doi.org/10.1068/c07116r.

Sol, D.A.D., 2013. The institutional, economic and social determinants of local government transparency. Journal of Economic Policy Reform, 16(1): 90-107.Available at: https://doi.org/10.1080/17487870.2012.759422.

Styles, A.K. and M. Tennyson, 2007. The accessibility of financial reporting of US. Municipalities on the internet. Journal of Public Budgeting, Accounting & Financial Management, 19(1): 56-92.Available at: https://doi.org/10.1108/jpbafm-19-01-2007-b003.

Statistics:

Google Scholor ideas Microsoft Academic Search bing Google Scholor

Funding:

This study received no specific financial support.

Competing Interests:

The authors declare that they have no competing interests.

Acknowledgement:

Both authors contributed equally to the conception and design of the study.

Related Article

( 1 ) Analyzing the Determinants of Achievements of Beneficiaries of Literacy Programs in Morocco: A Multilevel Analysis
( 2 ) In Search of Determinants of FDI Forward Spillovers: A Meta-Analysis
( 3 ) Organisation Isomorphism as Determinants of Environmental Management Accounting Practices in Malaysian Public Listed Companies
( 4 ) Determinants of Transparency in Financial Management on Local Government Websites: Evidence from Indonesia
( 6 ) Finance-Led Growth and Growth-Led Finance: Evidence from Nigeria Economic and Financial Sector Development
( 7 ) Creative Accounting and Financial Performance of Public Listed Companies in Malaysia
( 8 ) The Virtuous Cycle of Corporate Social Responsibility and Corporate Financial Performance: the Mediating Role of Firm Reputation
( 10 ) Accounting Conservatism and Financial Performance: Accountability of Shariah Compliant Companies in Malaysia
( 11 ) Ndebele Kinship Structures: A Solid Base for Conflict Management, Peace and Security in Our Communities
( 12 ) Management of Educational Support Services and Attainment of Universal Basic Education Goals in Primary Schools in Cross River State
( 13 ) Knowledge Management (KM) Practices in Education and Learning: Establishing a Knowledge Economy in Saudi Arabia
( 14 ) Understanding Audit Quality & Talent Management of Auditors in Practice through Content Analysis & Interviews
( 17 ) School Management Practices, Teachers Effectiveness, and Students’ Academic Performance in Mathematics in Secondary Schools of Cross River State, Nigeria
( 18 ) An Assessment of Child Abuse among Muslim Parents in Keffi Local Government Area, Nasarawa State, Nigeria
( 19 ) Affective Humanism: Towards an Ontology for Accountability in Local Government Administration in Nigeria
( 20 ) Spatial Variability in the Distribution of Migrants and Indigenous Labour Force among Oil Companies in Ogba/Ndoni/Egbema Local Government Area of Rivers State
( 21 ) Local Content Agenda: The Role of Institution Theory on Policy and Practical Challenges in Local Procurement Practice by Mining Entities in Tanzania
( 28 ) Has Financing Poverty Reduction Scheme Help to Alleviate Poverty? Evidence from Nigeria
( 29 ) Exploring the Link between Governance and Institutions: Theoretical and Empirical Evidence from Tanzania
( 30 ) The Effects of Country-Level Governance and Corporate Cash Holdings: Evidence from Hospitality Firms in ASEAN-5
( 31 ) Governance-Led Intellectual Capital Disclosure: Empirical Evidence from Pakistan
( 33 ) Triad of Big Data Supply Chain Analytics, Supply Chain Integration and Supply Chain Performance: Evidences from Oil and Gas Sector
( 34 ) Factors Influencing Voluntary Audit among Small and Medium Enterprises: The Malaysian Evidence
( 36 ) Corporate Governance and Firm Risk: Evidence from Malaysian Shariah Compliance Companies