scholarly journals Financial Distress, Regional Independence and Corruption: An Empirical Study in Indonesian Local Governments

2021 ◽  
Vol 4 (1) ◽  
pp. 54-70
Author(s):  
Evi Maria ◽  
Abdul Halim ◽  
Eko Suwardi
Keyword(s):  
Financial Performance ◽  
Financial Distress ◽  
Local Governments ◽  
Performance Ratio ◽  
Additional Test ◽  
Financial Efficiency ◽  
Funding Sources ◽  
Study Results ◽  
Solvency Ratio ◽  
Positive Effect

This study aims to determine the effect of financial distress and regional independence on the probability of corruption in the local governments, Indonesia. This study used panel data of local governments in Indonesia in 2012 and 2013 with a total of 785 local governments. Data were analyzed using logistic regression analysis. The study results found that financial distress had no effect on the probability of corruption, while regional independence had a positive effect on the probability of corruption in the local governments, Indonesia. This means that if the regional independence is high then the probability of corruption in the local government is also high, vice versa. The study findings were also robust in a separated analysis, when additional test was carried out. This study found empirical evidence that the independence of funding sources, independence ratios to meet regional needs, and the amount of regional income could be used to detect corruption in local governments, Indonesia, while the budget solvency ratio, financial performance ratio of budget, financial performance ratio of fund equity and regional financial efficiency could not.

scholarly journals Financial performance analysis of GIC Re

2020 ◽  
Vol 17 (1/2) ◽  
pp. 181-195
Author(s):  
Tutun Mukherjee ◽  
Pinki Gorai ◽  
Som Sankar Sen
Keyword(s):  
Financial Performance ◽  
Performance Indicators ◽  
Financial Distress ◽  
Performance Ratio ◽  
Logit Analysis ◽  
Content Type ◽  
Growth Capacity ◽  
Secondary Sources ◽  
Analysis Technique ◽  
Score Model

Purpose This study aims to analyse the following: first, the financial performance of General Insurance Re (GIC Re) using performance ratios (PRs); second, the uniformity of different financial performance indicators of GIC Re; third, the internal growth capacity of GIC Re; and finally, the likelihood of GIC Re going into financial distress. Design/methodology/approach As a sample, GIC Re, the lion shareholder in Indian Reinsurance Industry has been considered in the present study. All the necessary data have been extracted from the secondary sources over a time period of 16 years. The financial performance of GIC Re is assessed using five standard ratios, and the uniformity of different financial performance indicators of GIC Re has been examined using Kendall’s Coefficient of Concordance (W). To assess the internal growth capacity of GIC Re internal growth rate has been used, and the likelihood of GIC Re going into financial distress is analysed using multivariate discriminant approach, namely, modified Altman’s Z-score model and logit analysis technique, namely, Ohlson’s O-score model. Findings The results exhibit that financial performance of GIC Re is somewhat satisfactory over a few considerable areas. However, no notable degree of uniformity has been observed amongst the varied financial performance indicators, namely, performance ratio, expense ratio, return on assets, risk retention ratio and combined ratio of GIC Re. The results also reveal GIC Re is lacking ability of growing internally. Moreover, there remains a significant possibility of GIC Re going into financial distress in the near future and so. Originality/value This study is one of the first empirical research studies in India that examines the financial performance of GIC Re from different perspectives.

scholarly journals Pengaruh Pendapatan Asli Daerah, Dana Alokasi Umum dan Belanja Daerah terhadap Kinerja Keuangan Pemerintah Daerah Kabupaten/Kota di Provinsi Sumatera Barat

2021 ◽  
Vol 3 (1) ◽  
pp. 1-11
Author(s):  
Berti Indah Sari ◽  
Halma Wati
Keyword(s):  
Financial Performance ◽  
Local Governments ◽  
Linear Regression Analysis ◽  
Multiple Linear Regression Analysis ◽  
Fiscal Year ◽  
Regional Government ◽  
Significant Positive Effect ◽  
Previous Theory ◽  
West Sumatra ◽  
Positive Effect

This study aims to examine the effect of local revenue, general allocation funds and regional spending on the financial performance of local governments. The sample used in this study were districts / cities of West Sumatra Province with 12 districts and 7 cities in West Sumatra. The data used in this study is the data on the realization of the District / City APBD in West Sumatra Province for the 2015-2018 fiscal year. This research uses descriptive statistical data analysis techniques, classical assumption test, multiple linear regression analysis, hypothesis testing and determination coefficient test. The results showed that the Regional Original Revenue, DAU and Regional Expenditures together had a significant positive effect on Regional Government Financial Performance. The test results are in accordance with the previous theory and hypothesis which states that PAD, DAU and Regional Expenditures have a significant positive effect on the financial performance of local governments.

scholarly journals PENGARUH UKURAN PEMERINTAH DAERAH, PENDAPATAN ASLI DAERAH DAN BELANJA MODAL TERHADAP KINERJA KEUANGAN PEMERINTAH DAERAH

2019 ◽  
Vol 8 (8) ◽  
pp. 4759
Author(s):  
Ni Made Diah Permata Sari ◽  
I Ketut Mustanda
Keyword(s):  
Data Analysis ◽  
Local Government ◽  
Financial Performance ◽  
Local Governments ◽  
Capital Expenditure ◽  
Linear Regression Analysis ◽  
Multiple Linear Regression Analysis ◽  
Negative Effect ◽  
The Government ◽  
Positive Effect

This study aims to examine and analyze the effect of local government size, regional original income and capital expenditure on the financial performance of local governments in Badung Regency for the period 2013 - 2017. Data analysis techniques used are multiple linear regression analysis. The results of data analysis show that the size of the local government has a negative effect on the financial performance of local governments. This shows that the size of the local government that is proxied by the total assets owned by the local government has not contributed to the financial performance of the local government. Original regional income has a positive effect on the financial performance of local governments. This shows that the higher the local revenue generated, the higher the financial performance of the local government. And capital expenditure has a positive effect on the financial performance of local governments. This shows that the higher capital expenditure made by the government, the higher the financial performance of local governments. Keywords: size, PAD, capital expenditure, financial performance

scholarly journals Effectiveness, Efficiency and Growth Ratios on Financial Performance on Medan City Government

2018 ◽  
Author(s):  
Andysah Putera Utama Siahaan
Keyword(s):  
Financial Performance ◽  
Financial Management ◽  
Local Governments ◽  
Municipal Government ◽  
City Government ◽  
Performance Ratio ◽  
Coefficient Of Determination ◽  
Efficiency Ratio ◽  
Growth Ratio ◽  
Effect Ratio

Regional autonomy (decentralization) is the regional authority to regulate and manage the interests of society at its initiative based on community aspiration and according to laws and regulation. One aspect of local government that must be regulated carefully is the financial management area. To analyze the performance of local governments in managing local finances can be done with the financial ratio analysis. The financial ratios used include the effectiveness ratios, efficiency ratio, growth ratio and the ratio of independence. The purpose of this study is to determine the financial performance of Medan. Government significant effect on the ratio of independence. The population in this study is Medan Realization Report Government Budget in which samples are taken four years (2010/2013 in months January to December). The variables studied include the ratio of effectiveness, efficiency ratio and growth ratio as independent variables as well as the ratio of independence as a dependent variable. The results of the regression analysis showed that the ratio of effectiveness, effectiveness ratio, and growth ratio is evident from the 0,000 probability value of <0.05. Partial, effectiveness ratio has significantly influenced the ratio of independence. However, efficiency ratio and growth rate do not significantly influence the ratio of independence (budget financial field municipal government). Analysis of the coefficient of determination (R2) shows the number of 0.452 or equal to 45.2% which changes the city government performance ratio by the effect ratio, efficiency ratio and growth ratio, while the remaining 54.8% are likely influenced by other variables not examined in this study there are activity ratio, debt service cover ratio.

scholarly journals Financial Performance of Local Government and Social Welfare: The Case in Indonesia.

2018 ◽  
pp. 1035-1039
Author(s):  
Khairudin Khairudin ◽  
Rosmiati Tarmizi ◽  
Indrayenti Indrayenti ◽  
Aminah Aminah ◽  
Kamaruzzaman Muhammad
Keyword(s):  
Content Analysis ◽  
Financial Performance ◽  
Human Development ◽  
Stakeholder Theory ◽  
Human Development Index ◽  
Local Governments ◽  
Financial Efficiency ◽  
Financial Independence ◽  
Financial Growth ◽  
The Relationship

This study aims to examine the relationship between financial performance and community welfare among the Indonesian local governments. Using content analysis, this study measures the financial performance by utilizing financial ratios such as financial independence, financial effectiveness, financial efficiency, and financial growth whilst community welfare is measured through the Human Development Index (HDI). Based on 146 Indonesian local governments, this study shows that the financial performance and the community welfare in Indonesian local governments are not favorable. This study also shows that financial independence, financial effectiveness and financial efficiency of the local governments are positive significantly affect community welfare. However, financial growth of the local governments has a negative and significant effect on community welfare. This study confirms the stakeholder theory, in which the local governments provide benefits to the stakeholders in the form of community welfare although such benefits has yet to reach the community’s expectations.

scholarly journals Analisis Rasio Keuangan Untuk Menilai Kinerja Keuangan Pada Perusahaan Multifinance Yang Terdaftar Di Bursa Efek Indonesia Periode Tahun 2015-2019

2021 ◽  
Vol 12 (2) ◽  
pp. 189-204
Author(s):  
Turmono ◽  
Mawarto
Keyword(s):  
Financial Performance ◽  
Activity Ratio ◽  
Stock Exchange ◽  
Comparative Method ◽  
Comparative Methods ◽  
Performance Ratio ◽  
The Third ◽  
Solvency Ratio

The objective of this research is to know the best financial performance and the financial performance ratio of multifinance companies listed at Indonesian Stock Exchange reviewed from the analysis of liquidity ratio, solvency ratio, activity ratio and profitability ratio. The method applied is descriptive and comparative methods. The result based on comparative method the ratio in 5 years calculated by the liquidity ratio of the company having the best CR is CFIN because it has the highest ratio of 230.15% and the best CSR is WOMF by 13.44%. The best solvency ratio is CFIN with the lowest DAR and DER ratio is 55.9% and 126.93%. Activity ratio result indicates the best RTO value is WOMF because it has the highest ratio by 0.37 times and the best TATO is ADMF with highest ratio of 0.32 times. The best profitability ratio is achieved by ADMF because it has the highest ROA and ROE ratios of 4.62% and 23.21%. Of total score in 2015-2019 periods, the first rank is occupied by ADMF with score 64, CFIN in the second one with score 84 and WOMF in the third with score 92. 

scholarly journals The Effect of Liquidity, Leverage, and Profitability on Financial Distress with Audit Committee as a Moderating Variable

2021 ◽  
Vol 04 (10) ◽  
Author(s):  
Okik Hastiarto ◽  
Keyword(s):  
Financial Distress ◽  
Audit Committee ◽  
Stock Exchange ◽  
Secondary Data ◽  
Annual Reports ◽  
Linear Regression Method ◽  
Manufacturing Companies ◽  
Study Results ◽  
Negative Effect ◽  
Positive Effect

This study examines the effect of liquidity, leverage, and profitability on financial distress with the audit committee as a moderating variable. This study used secondary data from the annual reports of manufacturing companies listed on the Indonesia Stock Exchange (IDX) from 2016 to 2019. The research sample was selected using purposive sampling, and 33 companies were obtained as the study samples. The data were then analyzed using the logistic linear regression method with SPSS ver 26 software. The study results found that liquidity and profitability had a negative effect on financial distress, whereas leverage had a positive effect on financial distress. In addition, the study also found that the audit committee enhanced the effect of liquidity and profitability on financial distress. In contrast, the audit committee reduced the effect of leverage on financial distress.

scholarly journals Financial Performance of Local Government and Social Welfare: The Case in Indonesia

2019 ◽  
pp. 168-172
Author(s):  
Khairudin Khairudin ◽  
Rosmiati Tarmizi ◽  
Indrayenti Indrayenti ◽  
Aminah Aminah ◽  
Kamaruzzaman Muhammad
Keyword(s):  
Content Analysis ◽  
Financial Performance ◽  
Human Development ◽  
Stakeholder Theory ◽  
Human Development Index ◽  
Local Governments ◽  
Financial Efficiency ◽  
Financial Independence ◽  
Financial Growth ◽  
The Relationship

This study aims to examine the relationship between financial performance and community welfare among the Indonesian local governments. Using content analysis, this study measures the financial performance by utilizing financial ratios such as financial independence, financial effectiveness, financial efficiency, and financial growth whilst community welfare is measured through the Human Development Index (HDI). Based on 146 Indonesian local governments, this study shows that the financial performance and the community welfare in Indonesian local governments are not favorable. This study also shows that financial independence, financial effectiveness and financial efficiency of the local governments are positive significantly affect community welfare. However, financial growth of the local governments has a negative and significant effect on community welfare. This study confirms the stakeholder theory, in which the local governments provide benefits to the stakeholders in the form of community welfare although such benefits has yet to reach the community’s expectations.

FLYPAPER EFFECT: FENOMENA SERIAL WAKTU DAN LINTAS KABUPATEN KOTA DI JAWA TIMUR 2003-2013

2015 ◽  
Vol 12 (2) ◽  
pp. 1
Author(s):  
Deni Oktavia
Keyword(s):  
Local Governments ◽  
Central Government ◽  
Funding Source ◽  
Block Grant ◽  
Flypaper Effect ◽  
Local Independence ◽  
Funding Sources ◽  
Asymmetric Behavior ◽  
Government Transfers ◽  
Positive Effect

The aims of local autonomy is to achieve local independence funding, so the interference of the central government decrease. Local governments have funding source from the own region revenues (PAD), which is used to finance expenditures and development. Regency or municipalities funding sources not only their PAD. Local governments also get help from central government transfers such block grant aid or transfer fund (DAU). In the course of the central government transfers actually become a disincentive for increased regional funding. Regions become more dependent on central government transfers rather than optimize their own revenues (PAD). There are has indications of asymmetric behavior in response to the transfer of central government. Region revenues (PAD) and the transfer fund (DAU) from central government is generally positive effect on the regional expenditure (BD). Results for the time series test indicates that occurred flypaper effect,  indicated by DAU more significant influence on regional expenditure of the influence of the PAD.  Regency or manucipalities in East Java generally done flypaper effect, BD response was greater from DAU components. Key words: region revenues, transfer fund, regional expenditure

scholarly journals PENGARUH ISLAMICITY PERFORMANCE INDEX DAN ISLAMIC SOCIAL REPORTING TERHADAP KINERJA KEUANGAN PERBANKAN SYARIAH DI INDONESIA

2021 ◽  
Vol 3 (1) ◽  
pp. 30-43
Author(s):  
Kiki Fatmala ◽  
Wirman Wirman
Keyword(s):  
Financial Performance ◽  
Financial Services ◽  
Performance Index ◽  
Sampling Method ◽  
Profit Sharing ◽  
Performance Ratio ◽  
Social Reporting ◽  
Return On Assets ◽  
Negative Effect ◽  
Positive Effect

AbstractThis study aims to test empirically the effect of the Islamic performance index and Islamic social reporting on financial performance as proxied by Return on assets. The research was conducted at Islamic Commercial Banks registered with the Financial Services Authority in 2014-2019 with the sampling method using purposive sampling. The analysis method used is multiple linear regression. The results of hypothesis testing in this study indicate that partially the profit sharing ratio has no effect on financial performance. Zakat performance ratio has a positive effect on financial performance and Islamic social reporting has a negative effect on financial performance. Simultaneously, profit sharing ratio, zakat performance ratio and Islamic social reporting have a positive effect on financial performance Keywords : Profit Sharing Ratio; Zakat Performance Ratio; Islamic social reporting ; financial performance

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