Analysis of potential factors of financial statement disclosure: Evidence from Indonesian local government

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This study explores the relationship between the number of local parliamentarians, local government budget expenditures, Java/non-Java jurisdiction, liabilities, and Local Own-source revenue and financial statement disclosure. It relies on multiple theoretical frameworks and uses a sample of 180 local government financial reports in Indonesia for 2021 that have been audited by the Indonesian National Audit Board. Using the SPSS Version 25 program, multiple regression analysis was used in this study to assess hypotheses. The results found that Java/non-Java jurisdiction (β = 0.259; p < 0.05) and Local Own-source revenue (β = 0.321; p < 0.05) affect the disclosure of financial statements. In addition, the number of local parliamentarians (β = 0.071; p > 0.05), local government budget expenditure (β = 0.038; p > 0.05), and liability (β = 0.005; p > 0.05) does not affect the disclosure of financial statements. The contribution to local government is to analyze potential aspects related to the government’s increased pressure to make financial statement disclosure. The use of information technology to meet social demands more effectively and efficiently is one option for regional governments to disclose their financial statements.

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    • Table 1. Final sample summary
    • Table 2. Variable measurement
    • Table 3. Independent variable in descriptive statistics
    • Table 4. Multiple regression results
    • Conceptualization
      Azwir Nasir, Meilda Wiguna
    • Data curation
      Azwir Nasir, Andreas Andreas, Hardi Hardi
    • Formal Analysis
      Azwir Nasir, Meilda Wiguna, Taufeni Taufik
    • Methodology
      Azwir Nasir, Meilda Wiguna, Andreas Andreas, Taufeni Taufik
    • Resources
      Azwir Nasir, Andreas Andreas, Hardi Hardi
    • Software
      Azwir Nasir, Meilda Wiguna
    • Supervision
      Azwir Nasir
    • Validation
      Azwir Nasir, Meilda Wiguna, Andreas Andreas, Hardi Hardi, Taufeni Taufik
    • Writing – original draft
      Azwir Nasir
    • Visualization
      Meilda Wiguna
    • Writing – review & editing
      Meilda Wiguna, Andreas Andreas
    • Investigation
      Andreas Andreas, Hardi Hardi, Taufeni Taufik