The Effect of Characteristics, Incumbent Status and Political Party Affiliation of Local Head on Local Expenditure Deviation

Rika Restiana ,Abdul Hadi Sirat Dan Hartaty Hadady

doi:10.7176/ppar/11-6-07

Abstract

This research aims to examine the effect of characteristics, incumbent status and political party affiliation of local head on local expenditure deviation. The independent variables are age, education level, professional background, incumbent status and political party affiliation of local heads. The dependent variable is local expenditure deviation. The population is all local heads in Indonesia in 2018. The study samples are 157 Local heads. The sampling method used is purposive sampling technique. The data analysis method is multiple regression facilitated by SPSS version 26 software . The research results show that age, education level, professional background, and incumbent status of local head do not affect on local expenditure deviation. The political party affiliation of local head has a positive effect on local expenditure deviation. Keywords: Characteristics of Local heads, Incumbent Status, Political Party Affiliation, Local Expenditure Deviation DOI: 10.7176/PPAR/11-6-07 Publication date: July 31 st 2021

Highlights

The local autonomy system in Indonesia gives some of authority that previously decided by central government
The local autonomy is an embodiment of decentralization to give local the authority to regulate and manage the interests of local community in according to their own initiatives based on aspirations of people (Law Number 32 year 2004 which has been changed to Law no. 23 year 2014)
The education level of local head cannot become a predictor for local expenditure deviation

Summary

Introduction

The local autonomy system in Indonesia gives some of authority that previously decided by central government. The local autonomy is an embodiment of decentralization to give local the authority to regulate and manage the interests of local community in according to their own initiatives based on aspirations of people Upper echelon theory is a theory to explain that organizational outcomes, namely strategic choices and performance levels can be partially predicted by the characteristics of managerial background (Hambrick and Manson 1984). This theory can be adopted in local government where local autonomy and decentralization have made local heads have great authority to manage the local finances. The distribution of functions is given to provinces and districts/cities

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Methods

Discussion

Conclusion