Do Characteristics And Political Background Of Regional Heads Influence Financial Performance Of Local Governments In Indonesia?
Abstract
The present research aims at examining the influence of characteristics and political background of
regional heads on financial performance of local governments in Indonesia. The population in the present
research includes local governments in Indonesia. The samples are second level of local governments in
Java. The total number of final samples is 112. Data comprise the APBD realization reports, data from
official websites of local governments, and data from official website of the Local Government Election
Commission. Panel data regression was employed for data analysis. The results of the present study
indicate that educational background and level of education exert an influence on financial performance
of local governments. Meanwhile, tenure, age, and political background do not have a significant
influence on financial performance of local governments. The present research was only conducted at
second level of local governments in Java in 2016—2018. The present research gives contribution to the
literature of local government performance, especially from the perspectives of financial performance of
second level local governments in Java Island. Research on the use of political background has rarely
been conducted to assess financial performance of local governments.
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