Internet Financial Reporting Of Public Institutions and E-Government as a Medium of Good Governance in Indonesia

Abstract

Objective - Transparency of financial reporting can be achieved through various media including the internet and is an important factor of good governance. The use of internet in government has been regulated to encourage the government to build and develop websites to present information to the public. This research analyzes the factors that influence the government's internet financial reporting (IFR) through e-government. Methodology/Technique - The factors tested in this research are: size, leverage, capital expenditure, and audit opinion of the Republic Indonesia Audit Board (BPK). The population of this research is 25 ministries registered on the e-government ranking index (PeGI) between 2013 and 2015. Path analysis using the SPSS 21 application program is used. Findings - The results show that size, capital expenditure and audit opinion of BPK affected the use of IFR through e-government, whereas leverage did not affect the use of IFR through e-government. Novelty – These findings indicate that e-government is an important mediating factor in disclosing financial reports on the internet as a medium of good governance for public institutions in Indonesia. Type of Paper - Empirical Keywords: Internet Financial Reporting; Size; Leverage; Capital Expenditure; Audit opinion; E-government. JEL Classification: M40, M41, M49.