The Effects of Local Financial Independence, Local Revenue Effectiveness and Local Financial Efficiency on Capital Expenditure with Balancing Fund as Moderating Variable: Empirical Study at Province of Sumatera Utara

Rina Br Bukit, Anita Saragih, Sri Mulyani

2018

Abstract

This study aims to test the effects of local financial independence, local revenue effectiveness and local financial efficiency on capital expenditure in the Regencies/Cities of North Sumatera Province in the period of 2014-2016. This research uses 99 samples consisting of 33 regencies/cities. The data is obtained from the Directorate General of Fiscal Balance in the form of local government financial reports. The result of this study shows that local revenue effectiveness and local financial efficiency have positive and significant influence on capital expenditure. However, the local financial independence has no significant effect on capital expenditure. This study also finds that balancing fund can moderate the effects of local financial independence, local revenue effectiveness and local financial efficiency on capital expenditure.

Paper Citation

in Harvard Style

Bukit R., Saragih A. and Mulyani S. (2018). The Effects of Local Financial Independence, Local Revenue Effectiveness and Local Financial Efficiency on Capital Expenditure with Balancing Fund as Moderating Variable: Empirical Study at Province of Sumatera Utara.In Proceedings of the International Conference of Science, Technology, Engineering, Environmental and Ramification Researches - Volume 1: ICOSTEERR, ISBN 978-989-758-449-7, pages 1821-1825. DOI: 10.5220/0010102618211825

in Bibtex Style

@conference{icosteerr18,
author={Rina Br Bukit and Anita Saragih and Sri Mulyani},
title={The Effects of Local Financial Independence, Local Revenue Effectiveness and Local Financial Efficiency on Capital Expenditure with Balancing Fund as Moderating Variable: Empirical Study at Province of Sumatera Utara},
booktitle={Proceedings of the International Conference of Science, Technology, Engineering, Environmental and Ramification Researches - Volume 1: ICOSTEERR,},
year={2018},
pages={1821-1825},
publisher={SciTePress},
organization={INSTICC},
doi={10.5220/0010102618211825},
isbn={978-989-758-449-7},
}

in EndNote Style

TY - CONF

JO - Proceedings of the International Conference of Science, Technology, Engineering, Environmental and Ramification Researches - Volume 1: ICOSTEERR,
TI - The Effects of Local Financial Independence, Local Revenue Effectiveness and Local Financial Efficiency on Capital Expenditure with Balancing Fund as Moderating Variable: Empirical Study at Province of Sumatera Utara
SN - 978-989-758-449-7
AU - Bukit R.
AU - Saragih A.
AU - Mulyani S.
PY - 2018
SP - 1821
EP - 1825
DO - 10.5220/0010102618211825