Jurnal Indonesia Sosial Sains
Vol. 5 No. 07 (2024): Jurnal Indonesia Sosial Sains

The Effect of Regional Financial Management on Financial Distress of Local Government in Indonesia

Moh. Haidar Nashrullah (Universitas Trisakti)
Khomsiyah Khomsiyah (Universitas Trisakti)

Article Info

Publish Date
22 Jul 2024

Abstract

Deficits experienced by local governments can lead to financial difficulty, often referred to as financial distress. Although local governments experience deficits, local governments can avoid these conditions with good regional financial management.  This research aims to determine regional financial management's effect on local governments' financial distress in 2019-2022. The sample in this research uses a total sampling technique at all provincial and local government levels in 2019-2022. This research uses secondary data with documentation techniques. Binary logistic regression was obtained to perform data analysis. The results showed that financial independence significantly negatively affects financial distress. Financial flexibility has a significant negative effect on financial distress. Operational solvency does not have a significant adverse effect on financial distress. Short-term solvency has a significant positive effect on finances. Service solvency has a significant negative effect.

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Journal Info
Jurnal Indonesia Sosial Sains
Website

Abbrev

jiss

Publisher

CV. Publikasi Indonesia

Subject

Humanities Astronomy Biochemistry, Genetics & Molecular Biology Chemistry Computer Science & IT Decision Sciences, Operations Research & Management Earth & Planetary Sciences Economics, Econometrics & Finance Energy Environmental Science Immunology & microbiology Law, Crime, Criminology & Criminal Justice Library & Information Science Materials Science & Nanotechnology Neuroscience Physics Social Sciences

Description

The Jurnal Indonesia Sosial Sains is a scientific journal in the form of research and can be accessed openly. This journal is published once a month by CV. Publikasi Indonesia. The Jurnal Indonesia Sosial Sains provides a means for ongoing discussion of relevant issues that fall within the focus and ...