Financial Performance of Local Government and Social Welfare: The Case in Indonesia

Khairudin Khairudin,Rosmiati Tarmizi,Kamaruzzaman Muhammad,Aminah Aminah,Indrayenti Indrayenti

doi:10.32861/jssr.spi1.168.172

Abstract

This study aims to examine the relationship between financial performance and community welfare among the Indonesian local governments. Using content analysis, this study measures the financial performance by utilizing financial ratios such as financial independence, financial effectiveness, financial efficiency, and financial growth whilst community welfare is measured through the Human Development Index (HDI). Based on 146 Indonesian local governments, this study shows that the financial performance and the community welfare in Indonesian local governments are not favorable. This study also shows that financial independence, financial effectiveness and financial efficiency of the local governments are positive significantly affect community welfare. However, financial growth of the local governments has a negative and significant effect on community welfare. This study confirms the stakeholder theory, in which the local governments provide benefits to the stakeholders in the form of community welfare although such benefits has yet to reach the community’s expectations.

Highlights

When we started teaching case studies in Kazan State University, the teaching materials for more advanced students were still biased towards theoretical aspects of business and law
Students at the university have become more and more aware of the importance of English to their professional careers. They have come themselves to feel the necessity of developing their professional skills, and so have their teachers, who realise that the design of any curriculum has to be student-centred
Though the pattern of a ready made case study may be followed, it is tailor made for the class

Summary

Introduction

When we started teaching case studies in Kazan State University, the teaching materials for more advanced students were still biased towards theoretical aspects of business and law. Students at the university have become more and more aware of the importance of English to their professional careers They have come themselves to feel the necessity of developing their professional skills, and so have their teachers, who realise that the design of any curriculum has to be student-centred. It has to be determined primarily by the long-term needs of the students. Students graduating from the university have to be ready to go on to the stage in their lives, join the work force and function effectively in English Since they are going to be lawyers, managers, business people, executives and so on, they will need to use English effectively in their business transactions. They must absorb information quickly, read selectively, and make decisions under pressure

Methods

Results

Conclusion