Local Government Characteristics, Adoption of Accrual Accounting, and Government Performance

Ningrum Pramudiati ,Baldric Siregar

doi:10.32861/jssr.spi2.153.160

Abstract

Accrual accounting is the accounting basis that began to be applied to Indonesian Government Accounting Standards (SAP) in 2015. This study aimed to examine the effect of local government characteristics on the financial performance of local government using the adoption of accrual-based Government Accounting Standard as a mediation variable. The sample is the local government in the Provinces of DIY and Central Java. This research was analyzed by Partial Least Square (PLS). The results showed that leadership education background, experience using the accrual basis, complexity, and local government’s wealth have a positive effect on the adoption of accrual-based Government Accounting Standard. Furthermore, leadership education background, and experience using accrual basis have a positive effect on the financial performance of local government. In contrary, the adoption of accrual-based Government Accounting Standard and local government’s expense have a negative effect on the financial performance of local government. The adoption of accrual-based Government Accounting Standard mediates the effect of leadership education background, experience using accrual basis, and local government’s wealth on the financial performance of local government.

Highlights

In recent years, the higher education industry has evolved, and student expectations towards universities have increased (Lin, Salazar, & Wu, 2018)
T-test analysis indicates that It has been proved from the data analysis that the university facilities affect the student satisfaction more in Malaysia than Pakistan
Whereas the student satisfaction varies in Pakistan across most of the universities, the student expectations towards university facilities are low in Pakistan

Summary

Introduction

The higher education industry has evolved, and student expectations towards universities have increased (Lin, Salazar, & Wu, 2018). Student expectation from higher education institutions includes The faculty relationship with the students, activities and facilities provided to students and different level of satisfaction related to teaching and learning. These expectations directly impact the overall student satisfaction (Arambewela & Hall, 2009; Lin et al, 2018). Facilities and support in studies are key factors that will have enormous impact on student satisfaction level. Addition to this student career counseling during their studies have a considerable impact on the student’s career (Napitupulu et al, 2018)

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Conclusion