Developing a Measure of Local Government's Financial Condition
This study develops an instrument to measure the .financial condition of local governments (LG) in Indonesia. The instrument will serve as an early warning system for local governments' financial management. The instrument to measure their financial condition consists of six dimensions, namely...
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| Format: | Article |
| Language: | English |
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Universitas Gadjah Mada, Fakultas Ekonomika dan Bisnis
2014
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| Online Access: | https://repository.ugm.ac.id/135172/1/Developing%20a%20Measure%20of%20Local%20-%20JIEB.pdf |
| _version_ | 1826049340721856512 |
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| author | Ritonga, Irwan Taufiq |
| author_facet | Ritonga, Irwan Taufiq |
| author_sort | Ritonga, Irwan Taufiq |
| collection | UGM |
| description | This study develops an instrument to measure the .financial condition of local governments (LG) in Indonesia. The instrument will serve as an early warning system for local governments' financial management. The instrument to measure their financial condition consists of six
dimensions, namely short-term solvency, long-term solvency, budgetary solvency, service-level solvency, financial flexibility, and financial independence. Each dimension has its own indicators. There are a total of eighteen indicators examined in this study. These indicators are combined to form a composite index, called a Financial Condition Index (FCI). The reliability and
validity of the composite index is analyzed and the results show that the measures developed in this study are reliable and valid. In addition, the instrument possesses the criteria of a good measure: it is theoretically sound, a comprehensive assessment, it has predictive ability, distinctive ability, it is practical, objective, and a resistant to manipulation and gaming ..
Keywords: financial condition, local government, short term solvency, long term solvency, budgetary solvency, service-level solvency, financial flexibility, financial independence. |
| first_indexed | 2024-03-13T23:44:26Z |
| format | Article |
| id | oai:generic.eprints.org:135172 |
| institution | Universiti Gadjah Mada |
| language | English |
| last_indexed | 2024-03-13T23:44:26Z |
| publishDate | 2014 |
| publisher | Universitas Gadjah Mada, Fakultas Ekonomika dan Bisnis |
| record_format | dspace |
| spelling | oai:generic.eprints.org:1351722015-09-04T02:02:42Z https://repository.ugm.ac.id/135172/ Developing a Measure of Local Government's Financial Condition Ritonga, Irwan Taufiq Economics This study develops an instrument to measure the .financial condition of local governments (LG) in Indonesia. The instrument will serve as an early warning system for local governments' financial management. The instrument to measure their financial condition consists of six dimensions, namely short-term solvency, long-term solvency, budgetary solvency, service-level solvency, financial flexibility, and financial independence. Each dimension has its own indicators. There are a total of eighteen indicators examined in this study. These indicators are combined to form a composite index, called a Financial Condition Index (FCI). The reliability and validity of the composite index is analyzed and the results show that the measures developed in this study are reliable and valid. In addition, the instrument possesses the criteria of a good measure: it is theoretically sound, a comprehensive assessment, it has predictive ability, distinctive ability, it is practical, objective, and a resistant to manipulation and gaming .. Keywords: financial condition, local government, short term solvency, long term solvency, budgetary solvency, service-level solvency, financial flexibility, financial independence. Universitas Gadjah Mada, Fakultas Ekonomika dan Bisnis 2014-05 Article PeerReviewed application/pdf en https://repository.ugm.ac.id/135172/1/Developing%20a%20Measure%20of%20Local%20-%20JIEB.pdf Ritonga, Irwan Taufiq (2014) Developing a Measure of Local Government's Financial Condition. Journal of Indonesian Economy and Business, 29 (2). pp. 142-164. ISSN 2085-8272 http://jurnal.ugm.ac.id/jieb/issue/view/1019 |
| spellingShingle | Economics Ritonga, Irwan Taufiq Developing a Measure of Local Government's Financial Condition |
| title | Developing a Measure of Local Government's Financial Condition |
| title_full | Developing a Measure of Local Government's Financial Condition |
| title_fullStr | Developing a Measure of Local Government's Financial Condition |
| title_full_unstemmed | Developing a Measure of Local Government's Financial Condition |
| title_short | Developing a Measure of Local Government's Financial Condition |
| title_sort | developing a measure of local government s financial condition |
| topic | Economics |
| url | https://repository.ugm.ac.id/135172/1/Developing%20a%20Measure%20of%20Local%20-%20JIEB.pdf |
| work_keys_str_mv | AT ritongairwantaufiq developingameasureoflocalgovernmentsfinancialcondition |