Measuring Local Government Financial Performance With Financial Ratios

This research aims to analyze the financial performance of local government in the Toba Regency. The data source uses secondary data in the form of Toba Regency government financial reports for 2020-2022. Data were analyzed using a quantitative descriptive approach. The financial performance of the...

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Main Authors: Sahala Purba, Rani Agustines Purba, Lucyanna Yosephine Simangunsong, Nadia A.V.E. Gultom, Agnes Patricia R. Sinaga
Format: Article
Language:English
Published: LPPM Institut Syariah Negeri Junjungan (ISNJ) Bengkalis 2024-06-01
Series:JAS (Jurnal Akuntansi Syariah)
Subjects:
Online Access:https://ejournal.stiesyariahbengkalis.ac.id/index.php/jas/article/view/1835
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author Sahala Purba
Rani Agustines Purba
Lucyanna Yosephine Simangunsong
Nadia A.V.E. Gultom
Agnes Patricia R. Sinaga
author_facet Sahala Purba
Rani Agustines Purba
Lucyanna Yosephine Simangunsong
Nadia A.V.E. Gultom
Agnes Patricia R. Sinaga
author_sort Sahala Purba
collection DOAJ
description This research aims to analyze the financial performance of local government in the Toba Regency. The data source uses secondary data in the form of Toba Regency government financial reports for 2020-2022. Data were analyzed using a quantitative descriptive approach. The financial performance of the Toba Regency government is measured using eight financial ratios. The results of the research show that the financial performance of the Toba Regency government in terms of regional financial independence, regional financial dependence, and the degree of fiscal decentralization obtained meagre results. The level of effectiveness of local original revenue (LOR) and the effectiveness of local taxes obtained very effective results. The level of LOR efficiency and regional tax efficiency obtained very efficient results. The degree of contribution of regionally owned enterprises (ROEP) resulted in low contribution results. Overall, the Toba Regency needs to improve at implementing and managing finances. This research can be a reference for the Toba Regency government in improving financial performance through eight financial ratios so that budget use is effective and efficient.
format Article
id doaj-art-772474e011cb4a8fb7cba02ca1d70878
institution Kabale University
issn 2549-3086
2657-1676
language English
publishDate 2024-06-01
publisher LPPM Institut Syariah Negeri Junjungan (ISNJ) Bengkalis
record_format Article
series JAS (Jurnal Akuntansi Syariah)
spelling doaj-art-772474e011cb4a8fb7cba02ca1d708782025-08-20T03:35:18ZengLPPM Institut Syariah Negeri Junjungan (ISNJ) BengkalisJAS (Jurnal Akuntansi Syariah)2549-30862657-16762024-06-01818410010.46367/jas.v8i1.18351835Measuring Local Government Financial Performance With Financial RatiosSahala Purba0Rani Agustines Purba1Lucyanna Yosephine Simangunsong2Nadia A.V.E. Gultom3Agnes Patricia R. Sinaga4Universitas Methodist Indonesia, Medan, IndonesiaUniversitas Methodist Indonesia, Medan, IndonesiaUniversitas Methodist Indonesia, Medan, IndonesiaUniversitas Methodist Indonesia, Medan, IndonesiaUniversitas Methodist Indonesia, Medan, IndonesiaThis research aims to analyze the financial performance of local government in the Toba Regency. The data source uses secondary data in the form of Toba Regency government financial reports for 2020-2022. Data were analyzed using a quantitative descriptive approach. The financial performance of the Toba Regency government is measured using eight financial ratios. The results of the research show that the financial performance of the Toba Regency government in terms of regional financial independence, regional financial dependence, and the degree of fiscal decentralization obtained meagre results. The level of effectiveness of local original revenue (LOR) and the effectiveness of local taxes obtained very effective results. The level of LOR efficiency and regional tax efficiency obtained very efficient results. The degree of contribution of regionally owned enterprises (ROEP) resulted in low contribution results. Overall, the Toba Regency needs to improve at implementing and managing finances. This research can be a reference for the Toba Regency government in improving financial performance through eight financial ratios so that budget use is effective and efficient.https://ejournal.stiesyariahbengkalis.ac.id/index.php/jas/article/view/1835financial performancefinancial ratioslocal goverment
spellingShingle Sahala Purba
Rani Agustines Purba
Lucyanna Yosephine Simangunsong
Nadia A.V.E. Gultom
Agnes Patricia R. Sinaga
Measuring Local Government Financial Performance With Financial Ratios
JAS (Jurnal Akuntansi Syariah)
financial performance
financial ratios
local goverment
title Measuring Local Government Financial Performance With Financial Ratios
title_full Measuring Local Government Financial Performance With Financial Ratios
title_fullStr Measuring Local Government Financial Performance With Financial Ratios
title_full_unstemmed Measuring Local Government Financial Performance With Financial Ratios
title_short Measuring Local Government Financial Performance With Financial Ratios
title_sort measuring local government financial performance with financial ratios
topic financial performance
financial ratios
local goverment
url https://ejournal.stiesyariahbengkalis.ac.id/index.php/jas/article/view/1835
work_keys_str_mv AT sahalapurba measuringlocalgovernmentfinancialperformancewithfinancialratios
AT raniagustinespurba measuringlocalgovernmentfinancialperformancewithfinancialratios
AT lucyannayosephinesimangunsong measuringlocalgovernmentfinancialperformancewithfinancialratios
AT nadiaavegultom measuringlocalgovernmentfinancialperformancewithfinancialratios
AT agnespatriciarsinaga measuringlocalgovernmentfinancialperformancewithfinancialratios