Analysis of Factors That Influence the Financial Performance of the Regional Government of North Padang Lawas Regency

Abstract

Financial performance is one measure that describes the level of achievement of local governments in managing finances under the law. This research aims to determine the influence of local revenue, balancing funds, and capital expenditure on the financial performance of the North Padang Lawas Regency government. This research uses quantitative methods in the form of secondary data obtained from the official website of the Directorate General of Fiscal Balance. Data analysis uses multiple linear regression analysis with Eviews. The partial research results show that regional original income significantly affects regional government financial performance, and balancing funds has a negative and significant effect on regional government financial performance. In contrast, capital expenditure does not influence regional government financial performance. Simultaneously, local original income, balancing funds, and capital expenditure significantly affect the financial performance of the North Padang Lawas Regency regional government.