Abstract
The capital expenditures are part of direct expenditure in the regional budget. The other elements of capital expenditures are: personnel expenditure, and spending on goods and services. Planning and realization for capital expenditure in the regional budget for each Government Regional Work Units is a part of policy regional financial management in fiscal decentralization policy which need be increased to achieve value significantly over time. Increasing in planning and realization of capital expenditures is directly related to the amount of capital expenditure element that strengthens physical infrastructure which would strengthen economic growth for social welfare, regional competitiveness for facilitation and liberalization a single market and production base in AEC era. This study examines the role of agency theory and institutional theory in relation with planning and realization of capital expenditures of 82 (Eighty Two) Government Work Units of 3 (Three) regional government, namely Banjarmasin City, Banjar District, and Tanah Laut District in South Kalimantan Province. This study contributes to the accounting literature to assess role of conceptual framework with agency theory and institutional theory. The result of study showed: there are differences in the implementation of capital expenditure to meet AEC pillars and social welfare purposes by increasing capital expenditure through the role of the agency theory, and institutional theory. Relationship of agency theory and institutional theory with social welfare and AEC with the amount of C Contingency coefficient 0,313 and Cramer Coefficient of Association 0.191 indicates there are Moderate correlation: substantial relationship and Small correlation; Lower relationship association.
Highlights
The decision making process of planning and realization of direct expenditure carried out referring to regulation in the financial management of the State / Region
This process includes a number of phases, where each phase requires the activity of decision-making in meeting planning management output namely Budget Work Plan (BWP) and Document of realization of direct expenditure in the Budget Execution Document (BED)
Implementation for planning and realization for capital expenditures as regional investment which has done by regional government for social welfare and support facilitation of regional competitiveness in an era of AEA, reached via the main tasks and functions of each Governmental Work Units (GWUs)
Summary
The decision making process of planning and realization of direct expenditure carried out referring to regulation in the financial management of the State / Region. It can be concluded that the regional development spending has a positive and significant impact on economic growth In this case the role of regulation would guide for decision of plans and realization program/activity referring to capital expenditure projection. The research problem was, how do difference and relationship of planning and realization of capital expenditure with the role of the agency theory aspect, the institutional theory aspects and objectives of social welfare for Regional Competitiveness in AEC. Research purposes based on the background and the formulation of the issues raised, is to know how differences and relationship of planning and realization of capital expenditure with the role of the agency theory aspect, the institutional theory aspects and objectives of social welfare for Regional Competitiveness in AEC
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