AFEBI Accounting Review
Vol 2, No 2 (2017)

The Moderating Effect of Audit Opinion on The Local Government Financial Performances and The Disclosure Compliance of Financial Information

Akrom, Jamal (Polytechnic of State Finance (STAN))
Firmansyah, Amrie (Polytechnic of State Finance (STAN))



Article Info

Publish Date
11 Jan 2018

Abstract

This study is aimed to analyze the effect of financial performance indicators such as absorption of local expenditure ratio, effectiveness ratio, and financial independence ratio on the disclosure compliance of financial information on the website, as well as audit opinion as moderating variable. The sample of the study is the local governments in Java with consisting of 81 selected local governments within three years period. The data are analyzed with multiple regression analysis using the fixed-effect method.The results show that the absorption of the local budget ratio cannot encourage the disclosure compliance of financial information on the website. While the effectiveness ratio and the financial independence ratio are positively associated with the disclosure compliance of financial information on the website. This study also finds that audit opinion weakens the effect of financial independence ratio on the disclosure compliance of financial information on the website. However, audit opinion cannot moderate the effect of absorption of local budget ratio and the effectiveness ratio on the disclosure compliance of financial information on the website. Keywords: audit opinion; financial performances, information

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Journal Info

Abbrev

aar

Publisher

Subject

Economics, Econometrics & Finance

Description

AFEBI Accounting Review (AAR) is an academic journal which is published twice a year (June and December) by The Association of The Faculty of Economics and Business Indonesia. AAR is aimed as an outlet for theoretical and empirical research in the field of finance and accounting and to disseminate ...