Faktor – Faktor yang Mempengaruhi Kinerja Keuangan dengan Belanja Modal sebagai Variabel Moderating pada Pemerintah Kabupaten / Kota Provinsi Sumatera Utara Periode 2018 – 2022

Abstract

The objective of the research is to analyze and evaluate 1) regional development as a whole in order to yield regional growth which is in line with Regional Budget, 2) to make a good and appropriate financial management so that there will be improvement in the process of effected economic development in the post- implementation of the regional autonomy policy. 3) each region can take the responsibility for regional authority in Regional Development so that good financial management can be realized by the regional government to support its growth and development, 4) the increase in the potency of financial performance and this is shown by the compliance with rules and regulations such as those which are regulated by SAP when it does financial management. This research is conducted in the Regency/City Governments of the North Sumatera Province region. The population is 33 regencies/cities (25 regencies and 8 cities) with five years of observation starting from 2018 to 2022, the number of observations is 165. The data used are secondary data which are collected by using data documentation method obtained from the website of the Directorate General of Financial Balance (DJPK) of the Ministry of Finance of the Republic of Indonesia, the website of the Central Bureau of Statistics (BPS). the websites of each regional government which becomes the research sample. and other related sources. The research result of the research shows that 1) PAD (Regional Generated Revenue) has positive and significant effect on financial performance, 2) Operational expense has positive and significant effect on financial performance. 3) DBH (Profit Sharing Fund) has positive and significant effect on financial performance, 4) DAU (General Allocation Fund) has no significant effect on financial performance, 5) DAK (Special Allocation Fund) has positive and significant effect on financial performance, 6) Regional head's tenure has no significant effect on financial performance, 7) Capital expenditure is able to moderate the effect of regional generated revenue on financial performance, 8) Capital expenditure is unable to moderate the effect of operational expenditure on financial performance, 9) Capital expenditure is able to moderate the effect of profit sharing fund on financial performance, 10) Capital expenditure is unable to moderate the effect of general allocation fund on financial performance, 11) Capital expenditure is able to moderate the effect of special allocation fund on financial performance, and 12) Capital expenditure is unable to moderate the effect of regional head's tenure on financial performance. It is hoped that the contribution in this research provides information to interested parties, especially future researchers, and also it is hoped that the research results contribute to ideas for relevant agencies in making policies or efforts to improve financial performance.