Explaining the Relation Between Efficiency and Financial Condition

2018 ◽  
pp. 149-178
Author(s):  
Marco Bisogno ◽  
Beatriz Cuadrado-Ballesteros
Keyword(s):  
Local Governments ◽  
Capital Expenditures ◽  
Financial Health ◽  
Financial Condition ◽  
Positive Effect

There is a risk of presupposing that enhancing efficiency will simply improve financial health in local governments. However, there are several reasons to think that the healthy governments could be the least efficient ones. This chapter aims to contribute to this discussion by using a sample of the 132 largest Italian local governments during the period 2005-2014. The results show that the taken-for-granted positive effect of efficiency on financial condition is observable only when efficiency refers to current expenditures, but such a positive effect has not been observed in the case of capital expenditures.

F. ANALISIS PENGARUH PAD DAN DAK TERHADAP BELANJA MODAL PROVINSI JAWA TIMUR TAHUN 2010-2019

2021 ◽  
Vol 4 (1) ◽  
pp. 61
Author(s):  
Putri Indah Sari ◽  
Dr. Ignatia Martha Hendrati, S.E., M.E. ◽  
Kiki Asmara,S.E.,MM
Keyword(s):  
Time Series ◽  
Local Governments ◽  
Time Series Data ◽  
Capital Expenditure ◽  
Linear Regression Analysis ◽  
Secondary Data ◽  
Coefficient Of Determination ◽  
Series Data ◽  
Capital Expenditures ◽  
Positive Effect

Abstrak Undang-Undang Nomor 32 Tahun 2004 tentang Otonomi daerah atau Desentralisasi menjelaskan bahwa kewajiban pemerintah daerah dalam mengendalikan daerahnya sesuai dengan aturan dan undang-undang yang berlaku. Pengalokasian Anggaran Belanja Modal didasarkan pada kebutuhan sarana dan prasarana daerah, anggaran Belanja Modal sebaiknya dialokasikan untuk hal-hal yang produktif. Sehingga, pemerintah daerah harus mampu mengalokasikan anggaran belanja modal dengan benar karena hal itu merupakan salah satu langkah pemerintah daerah dalam meningkatkan pelayanan publik. Penelitian ini bertujuan untuk menguji pengaruh dari Pendapatan Asli Daerah (PAD)  dan Dana Alokasi Khusus (DAK) terhadap Belanja Modal Provinsi Jawa Timur. Penelitian ini menggunakan analisis data time series Tahun 2015-2019 di Provinsi Jawa Timur. Data yang digunakan merupakan data sekunder yang diperoleh dari Direktorat Jenderal Perimbangan Keuangan Republik Indonesia. Metode analisis yang digunakan adalah Analisis Regresi linier berganda, Uji koefisien Determinasi (R2), Uji-t dan Uji F dengan bantuan software SPSS. Dari hasil penelitian menunjukkan bahwa Pendapatan Asli Daerah dan Dana Alokasi Khusus secara (simultan) mempunyai pengaruh signifikan terhadap Belanja Modal di Provinsi Jawa Timur Tahun 2010-2019. Secara parsial 1) Pendapatan Asli Daerah berpengaruh positif terhadap Belanja Modal Provinsi Jawa Timur Tahun 2010-2019. 2) Dana Alokasi Khusus berpengaruh positif  variabel PAD berpengaruh positif terhadap Belanja Modal Provinsi Jawa Timur Tahun 2010-2019.   Kata kunci : Belanja Modal, PAD, dan DAK. Abstract Law Number 32 of 2004 concerning Regional Autonomy or Decentralization explains that the obligation of local governments to control their regions is in accordance with the applicable laws and regulations. The allocation of the Capital Expenditure Budget is based on the needs of regional facilities and infrastructure, the capital expenditure budget should be allocated for productive things. Thus, local governments must be able to allocate the capital expenditure budget properly because this is one of the steps of the local government in improving public services. This study aims to examine the effect of Regional Original Income (PAD) and Special Allocation Funds (DAK) on the Capital Expenditure of East Java Province. This study uses time series data analysis 2015-2019 in East Java Province. The data used is secondary data obtained from the Directorate General of Fiscal Balance of the Republic of Indonesia. The analytical method used is multiple linear regression analysis, coefficient of determination (R2), t-test and F test with the help of SPSS software. The results of the study indicate that the Regional Original Income and the Special Allocation Funds (simultaneously) have a significant effect on capital expenditure in East Java Province in 2010-2019. Partially 1) Local Own Revenue has a positive effect on the Capital Expenditures of East Java Province in 2010-2019. 2) The Special Allocation Fund has a positive effect, the PAD variable has a positive effect on the Capital Expenditure of East Java Province in 2010-2019. Keywords: Capital Expenditures, PAD, and DAK

ANALISIS FINANCIAL DISTRESS STUDI EMPIRIS PADA PERUSAHAAN MANUFAKTUR YANG LISTING DI BURSA EFEK INDONESIA

2017 ◽  
pp. 1-19
Author(s):  
Abdonsius Sitanggang
Keyword(s):  
Financial Distress ◽  
Stock Exchange ◽  
Net Income ◽  
Financial Health ◽  
Z Score ◽  
Working Capital ◽  
Financial Condition ◽  
Total Debt ◽  
Manufacturing Company ◽  
Positive Effect

The research aims to analyze the financial conditions to assess financial health at a manufacturing company in Indonesia Stock Exchange Listings. The benefits of the research is to provide material information to management and stakeholders regarding financial health as a material consideration for management or other parties, such as investors and potential investors, creditors and other parties for decision making. The population of the research was the financial report of a manufacturing company in Indonesia stock exchange listing as many as 140 companies. Sample research is as many as 30 companies. Opersionalisasi research is variable: the ratio of working capital to Total Assets, the ratio of net income to Total Assets was detained, the ratio of EBIT to Total Assets, and the ratio of the value of the capital markets themselves by taking action against Total Debt in 2009-2011. The required data are secondary data collected through technical documentation, data analysis techniques used are descriptive method. Based on the results of the study it can be concluded that corporate financial kondish manufacturing Indonesia stock exchange listings are rated from financial ratios, that ratio analysis is not membarikan a clear picture to stakeholders about health conditions and symptoms of the bankruptcy of the company. The listhne manufacturing company in BEI has not used the Z-Score model to know their financial health. Sporting results results of the discriminant equation obtained data 0, 553X1 0, 507X2 0, 409X3 0, 009X4. The value of the discriminant tells us that the ratio of working capital to Total Assets, the ratio of net income to Total Assets was detained, the ratio of EBIT to Total Assets and the ratio of the value of Own capital market Debt to Total positive effect of bankruptcy prediction manufacturing company listed in the stock exchange Inonesia. Wilks Lambda test results show that the ratio of working capital to Total Assets Ratio Return on hold, with a Total Assets, the ratio of EBIT to Total assets and market value of private equity with Total debt, significant positive effect on the symptoms of a manufacturing company in bankruptcy listings in Indonesia stock exchange. The z-score of 2009 indicates that its financial condition healthy companies as much as 22 companies and there are 8 companies in financial distress, indicating conditions are forecast to be bankrupt. In 2010, there were 21 companies that have a healthy financial condition while nine companies in In 2011, there are 24 companies that have a healthy financial condition while 6 company again in conditions of financial distress which indicates the forecast will go bankrupt. The advice given as consideration to the company is the company should implement a Z-Score method for knowing the financial condition, whether in financial distress or in kodisi healthy so that management and the users of the financial statements and other information to assess and predict the likelihood of the presence of symptoms of the bankruptcy of the company

Budgetary solvency of Italian local governments: an assessment

2019 ◽  
Vol 32 (2) ◽  
pp. 122-141 ◽  
Author(s):  
Marco Bisogno ◽  
Beatriz Cuadrado-Ballesteros ◽  
Serena Santis ◽  
Francesca Citro
Keyword(s):  
Financial Management ◽  
Local Governments ◽  
Public Services ◽  
Financial Health ◽  
Content Type ◽  
Financial Autonomy ◽  
Financial Condition ◽  
Public Financial Management ◽  
External Sources ◽  
Fresh Insight

PurposeThe purpose of this paper is to investigate budgetary solvency (BS) as a part of the financial condition of local governments (LGs), considering that the growing demand for public services is primarily affecting this variable.Design/methodology/approachThe study investigates a sample of 132 Italian LGs with more than 50,000 inhabitants for the period 2005–2014. The authors obtain a set of indicators as proxies of BS, which serve as the dependent variable of a regression model aimed at testing several independent variables which the authors are interested in, namely, financial autonomy, current equilibrium, level of indebtedness and investments.FindingsBS, as well as its three indicators—sustainability, flexibility and vulnerability—are positively related to financial autonomy and current equilibrium and negatively related to the level of indebtedness and investments.Practical implicationsTo cover citizens’ demands for public services guaranteeing sound financial management, policymakers are advised to control both the balance between current revenue and expenses and the level of indebtedness while preserving financial autonomy from external sources.Originality/valueThis study adds fresh insight to the literature on financial health, emphasising the relevance of public financial management.

Transparency as a Determinant of Local Financial Condition

2020 ◽  
pp. 1972-1995
Author(s):  
Beatriz Cuadrado-Ballesteros ◽  
Noemi Mordán ◽  
José Valeriano Frías-Aceituno
Keyword(s):  
Local Governments ◽  
Financial Health ◽  
Financial Condition

This study is an attempt to understand the importance of the broadcasting of information about the financial health of local governments. For this, a sample comprising the 110 most important Spanish cities has been used, for the period 2008–2010. Results show that transparency about local governments' actions improves their financial condition. If citizens know this information, the uncertainty over how the resources are used by leaders decreases, encouraging them to carry out efficient governance.

The geography of financial condition in the Mexico City metropolitan area

2021 ◽  
pp. 026909422110604
Author(s):  
Alejandra Trejo-Nieto
Keyword(s):  
Mexico City ◽  
Metropolitan Area ◽  
Local Governments ◽  
Inclusive Development ◽  
Financial Health ◽  
Political Factors ◽  
Financial Capacity ◽  
Financial Condition ◽  
Policy Concern ◽  
Administrative Units

There has been academic and policy concern about the financial capacity of administratively fragmented metropolitan areas to implement inclusive development measures and provide public services. Metropolitan public financing is problematic because there is a geographical mismatch between extended functional urban regions and administrative units. While local governments are responsible for implementing policies, spending, and raising revenues, financial capacity tends to differ across jurisdictions in response to economic, social and political factors, resulting in manifold disparities. Such variations can be particularly acute depending on the complexity and size of the metropolitan area, and can lead to major spatial disparities in the life standards of residents. This paper focuses on the local financial condition in Mexico City Metropolitan Area, which is often used to exemplify a fragmented metropolitan area. Official statistics from 1989 to 2018 are used to identify major intra-metropolitan variations in the financial condition of local governments. A novel methodology is used to classify municipalities according to their financial health, and discriminant analysis is used to explore the factors shaping the geography of financial performance. The economic and demographic size of municipalities appear to play a significant role.

Transparency as a Determinant of Local Financial Condition

2016 ◽  
pp. 202-225 ◽  
Author(s):  
Beatriz Cuadrado-Ballesteros ◽  
Noemi Mordán ◽  
José Valeriano Frías-Aceituno
Keyword(s):  
Local Governments ◽  
Financial Health ◽  
Financial Condition

This study is an attempt to understand the importance of the broadcasting of information about the financial health of local governments. For this, a sample comprising the 110 most important Spanish cities has been used, for the period 2008–2010. Results show that transparency about local governments' actions improves their financial condition. If citizens know this information, the uncertainty over how the resources are used by leaders decreases, encouraging them to carry out efficient governance.

scholarly journals Pengaruh Desentralisasi Fiskal Terhadap Tingkat Pengangguran di Wilayah Sumatera

2016 ◽  
Vol 1 (2) ◽  
pp. 81-95
Author(s):  
Riski Prasetyo Putro
Keyword(s):  
Unemployment Rate ◽  
Local Governments ◽  
Quantitative Research ◽  
Fiscal Decentralization ◽  
Capital Expenditures ◽  
Regression Analyses ◽  
Negative Effects ◽  
Goods And Services ◽  
Positive Effect ◽  
Regional Problems

Through fiscal decentralization, local governments are expected to assume more responsibility for regional problems such as unemployment. This study aims to analyze the effect of fiscal decentralization on the unemployment rate in Sumatra for the period 2006 to 2013. This quantitative research used panel data and multiple regression analyses. The results show that Regional Revenue and Revenue Sharing Fund have negative effects on the unemployment rate. Capital expenditures negatively affect the unemployment rate for the next two years, while goods and services expenditures have a positive effect on the unemployment rate. In addition, the General Allocation Fund, Special Allocation Fund and personnel expenditure do not affect the unemployment rate. Abstrak Melalui desentralisasi fiskal, pemerintah daerah diharapkan mampu menyelesaikan berbagai permasalahan daerah, antara lain pengangguran. Penelitian ini bertujuan mengetahui pengaruh pelaksanaan desentralisasi fiskal terhadap tingkat pengangguran di Wilayah Sumatera selama periode 2006 s.d. 2013. Penelitian ini merupakan penelitian kuantitatif dengan data panel dan teknik analisis regresi linier berganda. Hasil penelitian menunjukkan bahwa Pendapatan Asli Daerah dan Dana Bagi Hasil berpengaruh negatif terhadap tingkat pengangguran. Belanja modal berpengaruh negatif terhadap tingkat pengangguran pada dua tahun berikutnya, sedangkan belanja barang dan jasa justru berpengaruh positif terhadap tingkat pengangguran. Selain itu, Dana Alokasi Umum, Dana Alokasi Khusus, dan belanja pegawai tidak berpengaruh signifikan terhadap tingkat pengangguran.

ANALYTICAL TOOLS AND MANAGEMENT METHOD OF CASH FLOWS AT THE ENTERPRISE

2017 ◽  
pp. 93-105
Author(s):  
Olha NIPIALIDI
Keyword(s):  
Financial Stability ◽  
Cash Flows ◽  
Sustainable Growth ◽  
Financial Health ◽  
Traditional Assessment ◽  
Financial Condition ◽  
Efficient Management ◽  
Expert Assessments ◽  
Analytical Tools

Introduction. The most important factors for “financial health” of the company are effectively structured cash flows, precondition for sustainable growth and achievement of high end results of economic activity as a whole. Knowledge and practical use of modern methods of organization and efficient management of cash flows enables transition of the company to a new quality of economic development. Purpose. The aim of the article is the research and development of theoretical, methodological and practical recommendations concerning the organization of the management process of cash flows at the enterprise. Results. Methodology of traditional assessment of financial stability of the enterprise, its elements and the factors influencing it can significantly complement and improve through the use of advanced mathematical models that allow to analyze the accuracy and objectivity of expert assessments for determination the level of the financial condition of the enterprise. Conclusion. The system of indicators used in the analysis of cash flows at the enterprises is investigated and systematized. It is advisable to choose those indicators from the total aggregate of indicators that are the most attracted to specific users of accounting information. Methods for analyzing cash flow is supplemented as regards the determination of the integral index of financial stability, which makes it possible to install ranked of the investigated enterprise. Proposals for amendments the methodological approaches to estimating of future cash flows will allow more effectively increase usefulness and reliability of accounting and analytical information for making management decisions.

scholarly journals Does the “Miracle Drug” of Environmental Governance Really Improve Air Quality? Evidence from China’s System of Central Environmental Protection Inspections

2019 ◽  
Vol 16 (5) ◽  
pp. 850 ◽  
Author(s):  
Ruxin Wu ◽  
Piao Hu
Keyword(s):  
Air Pollution ◽  
Air Quality ◽  
Environmental Protection ◽  
Treatment Effect ◽  
Local Governments ◽  
Environmental Governance ◽  
Central Government ◽  
Local Officials ◽  
The Media ◽  
Positive Effect

Central environmental protection inspections have completed their goal of full coverage of 31 provinces in China, and more than 17,000 officials have been held accountable. The media has evaluated the effectiveness of central environmental protection inspections using the notions of “instant results” and the “miracle drug of environmental governance.” Can this approach effectively promote local environmental governance? This paper takes the treatment effect of central environmental protection inspections on air pollution as an example. Using the method of regression discontinuity, central environmental protection inspections are found to have a positive effect on the air quality index (AQI), but this effect is only short term and unsustainable. Additionally, there are inter-provincial differences. Judging from the research results on sub-contaminants, the treatment effect of central environmental protection inspections on air pollution is mainly reflected in PM10, PM2.5 and CO. Under the current situation in which PM10 and PM2.5 are the main assessment indexes, this phenomenon indicates that due to the political achievements and promotion of local officials and for reasons of accountability, it is more effective for the central government to conduct specific environmental assessments through local governments than to conduct central environmental protection inspections.

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