What Factors Affect Financial Transparency Reports? A Study of Regional Government Financial Reports in South Sulawesi Province, Indonesia

Jamaluddin Ahmad, Nurjannah Nonci, Achmad Nurmandi, Eko Priyo Purnomo, Agustiyara
International Journal of Economics and Business Administration, Volume VIII, Issue 4, 525-544, 2020
DOI: 10.35808/ijeba/604


Purpose: This study aims to analyze and correlate the significant factors that support the financial report system in local government to be more transparent and accountable. Design/Methodology/Approach: The article analyzes the government apparatuses competence, organization commitment, standard operating procedures, and control system, which are measured by data collected from selected local government and are analyzed through SPPS software. The measurement of financial reports' availability is done through a system-based crosstab correlation technique that displays factors and indicators accordingly. It shows the significance of the correlation between each factor and indicator. The explanation of each factor and indicator is done through quantitative and qualitative research. Findings: The research found that two main significant factors support transparency and accountability: government competence apparatuses and organizational commitment. On the other hand, two factors are less significant, the standard operating procedures and control system. In terms of indicators, the most significant that supports transparency and accountability, namely government structure, and the weakest indicator is ICT because some do not explicitly use the website-based system's accessibility. Practical Implications: This paper is a scientific report and can be a policy recommendation to support the local government in achieving transparency and accountability and gaining unqualified opinion. Originality/Value: There is still a lack of research on developing a local government reporting system by measuring transparency and accountability towards those selected four factors. The value of this paper is to classify affecting factors on the financial reporting system to improve the accountability and transparency of local government.

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