The Impact of The Quality of Local Government Financial Report on The Re-Election of Incumbents with Financial Expertise as a Moderating Variabel
DOI:
https://doi.org/10.26905/ap.v12i1.16780Keywords:
Local Government Financial Statements; Re-election; Incumbent; Financial Expertise.Abstract
Regional Government Financial Report (LKPD) is an important media for communicating regional government performance during a certain period. Incumbent regional heads often use the information contained in the LKPD to provide a positive image of their success in managing regional finance to the community. This research also tests the role of the financial expertise variable as a mine moderation that can strengthen the financial quality of the LKPD on the incumbent's re-election. In Addition, this research uses the financial expertise variable as a moderator which can strengthen the relationship between LKPD quality and the incumbent's re-election. We use Ordinary Least Square (OLS) regression to estimate the influence effect between variables. The results of this study did not influence variables. First, there is no effect quality of the LKPD on the incumbent's re-election. Second, the financial expertise variable is not proven to strengthen the influence of LKPD quality on the incumbent's re-election. Meanwhile, financial expertise is not proven to directly influence the incumbent's re-election. This finding has practical implications, where society needs to be more careful in assessing the success of incumbents.
Keywords: Local Government Financial Statements; Re-election; Incumbent; Financial Expertise.
Downloads
References
Akhmedov, A., & Zhuravskaya, E. (2004). Opportunistic Political Cycles: Test in a Young Democracy Set-ting*. Quarterly Journal https://doi.org/10.1162/0033553042476206
Balaguer-Coll, M. T., Brun-Martos, M. I., Forte, A., & Tortosa-Ausina, E. (2015). Local governments’ re election and its determinants: New evidence based on a Bayesian approach. European Journal of Political Economy, 39, 94–108. https://doi.org/https://doi.org/10.1016/j.ejpoleco.2015.04.004
Boulding, C., & Brown, D. S. (2014). Political Competition and Local Social Spending: Evidence from Bra-zil. Studies in Comparative International Development, 49(2), 197–216. https://doi.org/10.1007/s12116 013-9145-8
BPS. (2022). Statistik Telekomunikasi Indonesia 2022. https://www.bps.go.id/publication/2023/08/31/131385d0253c6aae7c7a59fa/statistik-telekomunikasi indonesia-2022.html
Brusca, I., & Montesinos, V. (2006). Are Citizens Significant Users of Government Financial Information? Public Money & Management, 26(4), 205–209. https://doi.org/10.1111/j.1467-9302.2006.00526.x
Cuadrado-Ballesteros, B., Santis, S., Citro, F., & Bisogno, M. (2019). Does financial health influence the re election of local governments? Journal of Public Budgeting, Accounting & Financial Management, 31(3), 345–363. https://doi.org/10.1108/JPBAFM-10-2018-0114
Daniels, J. D., & Daniels, C. E. (1991). Municipal financial reports: What users want. Journal of Account-ing and Public Policy, 10(1), 15–38. https://doi.org/https://doi.org/10.1016/0278-4254(91)90018-F
Darmastuti, D., & Setyaningrum, D. (2019). THE EFFECT OF DISCRETIONARY SPENDING ON IN-CUMBENT VICTORIES IN ELECTIONS. Humanities & Social Sciences Reviews, 7, 685–693. https://doi.org/10.18510/hssr.2019.7488
Hambrick, D. C., & Mason, P. A. (1984). Upper Echelons: The Organization as a Reflection of Its Top Man-agers. Academy of Management Review, 9(2), 193–206. https://doi.org/10.5465/amr.1984.4277628
Ingram, R. W., & Copeland, R. M. (1981). Municipal Accounting Information and Voting Behavior. The Accounting Review, 56(4), 830–843. http://www.jstor.org/stable/247204
Jensen, M. C., & Meckling, W. H. (1976). Theory of the firm: Managerial behavior, agency costs and own-ership structure. Journal of Financial Economics, 3(4), 305–360.
Jones, M. P., Meloni, O., & Tommasi, M. (2012). Voters as Fiscal Liberals: Incentives and Accountability in Federal Systems. Economics & Politics, 24(2), 135–156. https://doi.org/https://doi.org/10.1111/j.1468 0343.2012.00395.x
Kim, J. (2022). Extending upper echelon theory to top managers’ characteristics, management practice, and quality of public service in local government. Local Government Studies, 48(3), 556–577. https://doi.org/10.1080/03003930.2021.1882427
Lorig, A. N. (1941). Determining the Current Financial Position of a City. The Accounting Review, 16(1), 41 49. http://www.jstor.org/stable/239652 S. P.
Martins, R., & Veiga, F. J. (2013). Economic voting in Portuguese municipal elections. Public Choice, 155(3), 317–334. https://doi.org/10.1007/s11127-011-9849-0
Shapiro, (2005). Agency Theory. Annual Review of Sociology, 31, 263–284.
Thompson, P. N., & Whitley, J. (2017). The effect of school district and municipal government financial health information on local tax election outcomes: evidence from fiscal stress labels in Ohio. Public Choice, 170(3), 265–288. https://doi.org/10.1007/s11127-016-0395-7
Wynne, A. (2004). Public Sector Accounting—Democratic Accountability or Market Rules? Public Money & Management, 24(1), 5–7. https://doi.org/10.1111/j.1467-9302.2004.00385.x
Zimmerman, J. L. (1977). The Municipal Accounting Maze: An Analysis of Political Incentives. Journal of Accounting Research, 15, 107–144. https://doi.org/10.2307/2490636
Downloads
Published
How to Cite
Issue
Section
License
Copyright (c) 2026 Jurnal Akuntansi dan Perpajakan
This work is licensed under a Creative Commons Attribution 4.0 International License.
This work is licensed under a Creative Commons Attribution 4.0 International License.
