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- Title
Analysis of Capital Expenditure and Its Implications on Local Financial Independence.
- Authors
Normalita, Ina Sarah; Mahmud, Amir
- Abstract
The aim of this research are to determine the effect of intergovernmental revenue, local incentive fund and asset on the last year on capital expenditure and the effect of capital expenditure on local financial independence. The population in this research is all of local government in Indonesia with 131 samples that got by purposive sampling. The analytical tool of data used descriptive statistical analysis and regression analysis. The result showed that the intergovernmental revenue and assets on the last year had positive effect on capital expenditure partially and simultaneously. Local incentive fund had not effect toward capital expenditure. Capital expenditures had a positive effect toward local financial independence. The conclusion in this research are local governments can manage and use budget funds well and can comply the principal's interest and it is based by agency theory. Intergovernmental revenue can give encouragement on fiscal decentralization, that give impact on increase of economic growth, like the building of infrastructure and can impacts on capital expenditure and it is based by fiscal federalism theory.
- Subjects
INDONESIA; CAPITAL investments; GOVERNMENT revenue; LOCAL government; PUBLIC finance; ECONOMIC development
- Publication
Accounting Analysis Journal (AAJ), 2017, Vol 6, Issue 2, p219
- ISSN
2252-6765
- Publication type
Article