Abstract
The purpose of this study was to examine the effect of local revenue(PAD), general allocation funds (DAU), and revenue sharing (DBH) on capitalexpenditures in local governments. This study uses a sample of non-probabilitysampling with saturated sampling technique so that it gets a sample at theDepartment of Finance of the entire Surakarta Residency. The samples in thisstudy were 7 regions covering 1 Praja City (Surakarta) and 6 districts(Karanganyar, Sragen, Wonogiri, Sukoharjo, Klaten and Boyilali) using agencytheory. The type of data used is secondary data. The results of this study indicatethe significance value of Regional Original Income (PAD) of 0.001 <0.05, it canbe explained that PAD has a significant effect on capital expenditure. Thesignificance value of the General Allocation Fund (DAU) of 0.006 <0.05, it isexplained that the DAU has a significant effect on capital expenditure. Thesignificance value of Revenue Sharing (DBH) is 0.429> 0.05, it can be explainedthat DBH has no effect on capital expenditure. The coefficient of determinationshows an Adjusted R Square of 0.332, the effect of the independent variables,namely Regional Original Income (PAD), General Allocation Fund (DAU), andProfit Sharing Fund (DBH) on Capital Expenditure by 33.2% while the rest(100%) -33.2%) = 66.8% influenced by other variables not studied.
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Disclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.