Towards Regional Sustainable Development via Government Financial Transparency: Evidence from Indonesia
Volume 7, Issue 4 (2018), pp. 753–767
Pub. online: 30 June 2018
Type: Article
Open Access
Published
30 June 2018
30 June 2018
Abstract
We examine factors that influence financial transparency in local government website in Indonesia which is motivated by the low level of financial transparency displayed in the local government’s official website. The purpose of this research is to obtain empirical evidence on the effect of entity characteristics represented by the size of local government & taxes per capita, political factors represented by political power & e-government, and environmental factors represented by internet visibility & income per capita, on financial transparency displayed in local government website. By using three dimensions of financial transparency constructed from the combination of NGO Transparency International and government regulation, we try to assess financial transparency displayed in local government website more comprehensinvely. The observation was conducted at the end of August 2017 until September 2017. Logistic regression analysis was applied to evaluate the model. Using 411 samples from 514 Indonesia local governments in 2015, our data show that the level of financial transparency in local government website is still very low. Furthermore, the findings show that size of the local government, internet visibility, and e-government are positively associated with local government’s financial transparency, but other variables including taxes per capita, political power, and income per capita have no effect on financial transparency.