The Effect of Local Government Size and Capital Expenditure on Local Government Financial Performance

DOI

10.2991/978-94-6463-758-8_102How to use a DOI?

Keywords

size; capital expenditure; financial performance

Abstract

This study aims to test and analyse the effect of local government size and capital expenditure on local government financial performance in Bantaeng Regency for the period 2019 - 2023. The object of this research is the financial performance of the Bantaeng Regency local government in the 2019-2023 period. Local government financial performance can be analysed using effectiveness ratios. The data analysis technique used is multiple linear regression analysis. The results of data analysis show that local government size has a negative effect on local government financial performance. This shows that the size of local government size has a positive and significant effect on financial performance. The results of the analysis indicate that an increase in the size of local government, as measured by total assets or budget, has potential to improve financial performance. This confirms the importance of capacity and resources managed by local governments in achieving efficiency and effectiveness in financial management. Capital expenditure also has a positive and significant effect on financial performance. An increase in capital expenditure allocated to infrastructure investment and fixed assets shows a positive impact on financial performance, as better infrastructure can improve public services and support regional economic growth.

Copyright

© 2025 The Author(s)

Open Access

Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

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TY  - CONF
AU  - Muzzammil Ihza Mahendra
AU  - Asri Usman
AU  - Amiruddin Junus
PY  - 2025
DA  - 2025/07/30
TI  - The Effect of Local Government Size and Capital Expenditure on Local Government Financial Performance
BT  - Proceedings of the 9th International Conference on Accounting, Management, and Economics 2024 (ICAME 2024)
PB  - Atlantis Press
SP  - 1250
EP  - 1262
SN  - 2352-5428
UR  - https://doi.org/10.2991/978-94-6463-758-8_102
DO  - 10.2991/978-94-6463-758-8_102
ID  - Mahendra2025
ER  -