Abstract
This study aims to examine and analyze the effect of fiscal decentralization, balancing funds, budget surplus, and regional investment on the Financial Performance of Regency/City Governments throughout Sumatra. This study uses secondary data obtained from Sumatra's Regency/city budgets. The total population of this study is 154 Regency and cities throughout Sumatra. Sample identification using Cluster Random Sampling. Hypothesis testing using multiple linear regression analysis methods. This study indicates that only the remaining budget surplus has a negative and significant effect on the financial performance of Regency/city governments throughout Sumatra. While other variables, namely fiscal decentralization, balancing funds, and regional investment, have a positive and significant impact on the financial performance of Regency/city governments throughout Sumatra. Simultaneously, fiscal decentralization, balancing funds, budget surplus, and regional investment have a positive and significant impact on the Financial Performance of Regency/City Governments throughout Sumatra. Keywords: Fiscal Decentralization, Balancing Funds, Budget Surplus, Regional Investment, Regional Government Financial Performance.
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