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Open Access
Article
Publication date: 20 September 2018

Nirwana Nirwana and Haliah Haliah

The purpose of this paper is to re-test the determinant factors of the quality of financial statements and performance of the government by adding contextual factors, such as…

20956

Abstract

Purpose

The purpose of this paper is to re-test the determinant factors of the quality of financial statements and performance of the government by adding contextual factors, such as personal factor, system/administrative factor and political factor, that may affect the quality of financial statement information and performance of the government. Personal factor is proxied to the competencies that affect the quality of financial statements and performance. Social administrative factor is proxied on the regulations and presentation of quality financial statements.

Design/methodology/approach

The analysis unit in this study was conducted at the organizational level. The research object was in South Sulawesi Province. This was a descriptive and verificative research with survey technique. Based on the objectives of the research, this is an explanatory research. The research method used was explanatory survey with quantitative approach. The population of this research was proxied to the Regional Unit Organization (Organisasi Perangkat Desa) which compiled the financial statements in South Sulawesi Provincial Government consisted of 803 units of Local Government Agencies (Satuan Kerja Perangkat Daerah). The purposive sampling technique was chosen under the following criteria: the regional government whose financial statement has been audited by Badan Pemeriksa Keuangan; the regional government whose financial accountability report has been evaluated by Indonesia’s Agency for Financial and Development Supervision (Badan Pengawasan Keuangan dan Pembangunan). In line with the criteria mentioned above, the minimum samples required for 26 observations/indicators are 5×26=130 respondents. The sample size met the minimum sample requirement of 5 for each group (cell) (Hair et al., 2006, p. 112).

Findings

Personal factors competence affects the financial statements quality. The high personal factors competence will affect on the high financial statements quality. System/administration factors regulation affect the financial statement quality. The high system/administration factors regulation will affect on the high financial statements quality. Political factors affect the financial statements quality. The high political factors will affect on the high financial statements quality. Personal factor competence has no direct effect on the performance. The high personal factor competence will not affect the high or low of the performance. However, there is a significant indirect effect between personal factor competence on performance through the financial statements quality which means that higher personal factor competence will lead to higher performance through financial statements quality. System/administration factor regulation is not directly affects the performance. The high system/administration factor regulation will not affect on the high or low of the performance. However, there is a significant indirect effect between system/administration factor regulation on performance through the financial statements quality which means that higher the system/administration factor regulation will lead to higher performance through financial statements quality. Political factors is not directly affects the performance. The high political factors will not affect the high or low of the performance. However, there is a significant indirect effect between political factors on performance through the financial statements quality which means that the higher the political factor, it will leads to higher performance through the financial statements quality. Financial statements quality affects the performance. The high financial statements will affect on the performance.

Originality/value

The research issues raised are the increasing public demands for the government services and accountability, while on the other hand the government is faced with the report and financial quality that are below the expectation. This issue is a national strategic issue, leading this research to aim at providing guidelines that can help the regional government to formulate operational policies and strategies of the quality improvement of financial statement and performance of the regional government.

Details

Asian Journal of Accounting Research, vol. 3 no. 1
Type: Research Article
ISSN: 2443-4175

Keywords

Article
Publication date: 27 February 2021

Haliah

The purpose of this study is to empirically examine the influence of politics, culture and regulation on the budgetary slack and its impact on performance. Specifically, the…

Abstract

Purpose

The purpose of this study is to empirically examine the influence of politics, culture and regulation on the budgetary slack and its impact on performance. Specifically, the purpose of this study is to analyze the influence of culture, politics and regulation on budgetary slack and performance in local government.

Design/methodology/approach

Studies to develop model pengangaran good (good governance budgeting). Using the survey method. The total sample is 300 respondents in seven local governments in West Sulawesi. Respondents from the executive and legislative participate in the preparation of budgets in local government. The research instrument in questionnaire is tested using GSCA.

Findings

The third structural coefficient of the relationship is positive, indicating all three positive relationships. That is, the higher political, cultural, regulatory, will result in the higher budgetary slack. Thus, if one wants to reduce the budgetary slack, then one needs to reduce the problems of politics, culture and regulations. Other results obtained (a) significant political, cultural and regulatory effect on performance either directly or indirectly through budgetary slack. The sixth structural coefficient of the relationship is positive, indicating all six positive relationships. That is, the higher political, cultural and regulatory variables will lead to higher performance either directly or indirectly through budgetary slack; (b) information asymmetry and budgetary slack significantly affect performance. The second structural coefficient correlation is positive, indicating both positive relationships. That is, the higher information asymmetry and budgetary slack will result in higher performance; (c) budgeting participation moderating influence budgetary slack variables that are false and strengthen moderation. That is, the higher the value of participation budgeting (M) affects increasing influence through budgetary slack (Y1) on the performance (Y2).

Research limitations/implications

The results showed that the political, cultural and regulatory variables significantly affect the budgetary slack. The structural coefficient of the relationship of these three variables had positive-marked, indicating that the relationship of all those three was positive. Thus, the higher political, cultural and regulatory variables will result in higher budgetary slack. Political, cultural and regulatory variables significantly affected the performance both directly and indirectly through budgetary slack. Structural coefficient of the relationship of those six had positive-marked, indicating that the relationship of all those six was positive. Thus, the higher political, cultural and regulatory variables will lead to higher performance both directly and indirectly through budgetary slack.

Originality/value

This paper conducts a research on mediation effect of budgetary slack in relationship between politics, culture and regulation toward performance; this research retests the research result from Fisher (2002) about information asymmetry and performance, Rubin (1993) about political, budgetary slack and performance, Scott (2000) about regulatory, budgetary slack and performance, Indriantoro (2000) about mediation of budgetary slack in relationship between politics, culture and regulation toward performance and Mardiasmo (2005) about budgetary slack and performance. No studies have examined this kind of relationship simultaneously. location of study (no previous research for this relationship): local governments in West Sulawesi.

Details

International Journal of Law and Management, vol. 63 no. 3
Type: Research Article
ISSN: 1754-243X

Keywords

Open Access
Article
Publication date: 10 June 2019

Haliah and Nirwana

The purpose of this paper is to re-test the determinant factors of the quality of financial statements and performance of the government by adding contextual factors, such as the…

10481

Abstract

Purpose

The purpose of this paper is to re-test the determinant factors of the quality of financial statements and performance of the government by adding contextual factors, such as the personal factor, system/administrative factor and political factor, that may affect the quality of financial statement information and performance of the government. The personal factor is proxied to the competencies that affect the quality of financial statements and performance. The social administrative factor is proxied on the regulations and presentation of quality financial statements.

Design/methodology/approach

The analysis unit in this study was conducted at the organizational level. The research object was in the South Sulawesi Province. This was a descriptive and verificative research with a survey technique. Based on the objectives of the research, this is an explanatory study. The research method used was an explanatory survey with a quantitative approach. The population of this research was proxied to the Regional Unit Organization (Organisasi Perangkat Desa/OPD) which compiled the financial statements in the South Sulawesi Provincial Government and consisted of 803 units of local government agencies (Satuan Kerja Perangkat Daerah or SKPD). The purposive sampling technique was chosen under the following criteria: the regional government whose financial statement has been audited by the BPK, the regional government whose financial accountability report has been evaluated by Indonesia’s Agency for Financial, and Development Supervision (Badan Pengawasan Keuangan dan Pembangunan or BPKP). In line with the criteria mentioned above, the minimum samples required for 26 observations/indicators are 5 × 26 = 130 respondents. The sample size met the minimum sample requirement of five for each group (cell) (Hair et al., 2006, p. 112).

Findings

The personal factor “competence” affects the financial statements’ quality. The high personal factor “competence” will affect the high financial statements’ quality. The system/administration factor “regulation” affects the financial statement quality. The high system/administration factor “regulation” will affect the high financial statements’ quality. Political factors affect the financial statements’ quality. The high political factors will affect the high financial statements’ quality. The personal factor “competence” has no direct effect on the performance. The high personal factor “competence” will not affect the high or low of the performance. However, there is a significant indirect effect between the personal factor “competence” on performance through the financial statements’ quality, which means that the higher personal factor “competence” will lead to higher performance through financial statements’ quality. The system/administration factor “regulation” does not directly affect the performance. The high system/administration factor “regulation” will not affect the high or low of the performance. However there is a significant indirect effect between the system/administration factor “regulation” on performance through the financial statements’ quality which means that higher system/administration factor “regulation” will lead to higher performance through financial statements’ quality. The political factor does not directly affect the performance. The high political factors will not affect the high or low of the performance. However there is a significant indirect effect between political factors on performance through the financial statements’ quality which means that the higher political factor will lead to higher performance through the financial statements’ quality. Financial statements’ quality affects the performance. The high financial statements will affect the performance.

Originality/value

The research issues raised are the increasing public demands for the government services and accountability, while on the other hand, the government is faced with the report and financial quality that are below the expectation. This issue is a national strategic issue, leading this research to aim at providing guidelines that can help the regional government to formulate operational policies and strategies for the quality improvement of financial statement and performance of the regional government.

Details

International Journal of Excellence in Government, vol. 1 no. 1
Type: Research Article
ISSN: 2516-4384

Keywords

Open Access
Article
Publication date: 3 January 2024

Leticia Mahuwi and Baraka Israel

Understanding the interplay between transparency, accountability and e-procurement and their collective contribution to anti-corruption efforts in public procurement is crucial…

3483

Abstract

Purpose

Understanding the interplay between transparency, accountability and e-procurement and their collective contribution to anti-corruption efforts in public procurement is crucial for developing effective strategies and policies. This research seeks to investigate whether e-procurement plays a significant role in enhancing transparency and accountability and subsequently reducing corruption risks in the public pharmaceutical procurement system.

Design/methodology/approach

The study employed a cross-sectional questionnaire survey to gather data from 274 procurement personnel and pharmacists working in 28 government-owned hospitals in the Southern Highlands of Tanzania. The collected data were then analysed using confirmatory factor analysis (CFA) and the Hayes PROCESS macro to test the study hypotheses.

Findings

The study findings revealed a negative and significant relationship between transparency and procurement corruption (ß = −0.117, p < 0.008). Moreover, accountability negatively and significantly affects procurement corruption (ß = −0.162, p = 0.006). Furthermore, the findings indicate that, at a high degree of e-procurement system implementation, transparency and accountability have a stronger impact on procurement anti-corruption measures.

Practical implications

Policymakers and decision-makers should implement robust mechanisms that enhance transparency, accountability and anti-corruption efforts. These may include providing clear and accessible information on procurement processes, efficient mechanisms for monitoring and reporting procurement irregularities and continuous improvement of e-procurement systems. By incorporating these measures and nurturing collaboration amongst procurement stakeholders, it becomes possible to foster a procurement environment characterised by integrity, fairness, accountability and reduced corruption.

Originality/value

Whilst previous studies delved into exploring the effect of transparency and accountability on procurement anti-corruption, the novelty of this study is the inclusion of e-procurement as a moderating variable in the relationship between transparency, accountability and anti-corruption. By so doing, this study adds to the existing body of knowledge regarding anti-corruption measures and offers valuable practical insights for policymakers and professionals aiming to enhance transparency, accountability and ethical conduct within the public pharmaceutical procurement system.

Details

Management Matters, vol. 21 no. 1
Type: Research Article
ISSN: 2279-0187

Keywords

Article
Publication date: 2 July 2024

Abdulfatah Abdullah Abdulkareem Shayf, Mohd Abdullah, Mosab I. Tabash, Shahrukh Saleem, Asiya Chaudhary, Ammar Ali and Mushahid Ali Shamsi

The study evaluates whether an application of Ind-AS that converged with IFRS in India has enhanced financial reporting quality (FRQ) and how that is reflected in financial…

Abstract

Purpose

The study evaluates whether an application of Ind-AS that converged with IFRS in India has enhanced financial reporting quality (FRQ) and how that is reflected in financial performance (FP).

Design/methodology/approach

Design/methodology/approach: The study uses discretionary accruals (DACC) to measure FRQ. In addition, it uses ordinary least square (OLS) regression to examine the association between Corporate Governance attributes, FRQ, and financial performance for a sample of 24 textile companies from 2010 to 2021.

Findings

The results indicate that adopting IFRS has a role in monitoring CG attributes to enhance FRQ; this means the financial reporting qualit improves somewhat with some CG attributes under Ind-AS. In addition, the results demonstrate that financial reporting quality positively influences FP.

Practical implications

There are significant effects on authorities and decision-makers. The findings from this research can benefit lawmakers by providing Ind-AS policy enforcement with more consideration. The results are also helpful for policymakers who want to improve CG and need proof of the significance of high FRQ in this respect.

Originality/value

Given the dearth of research on FRQ in India, the study extends prior literature on FRQ by examining the quality of financial reporting according to the transformation to IFRS in Indian textile firms. The theoretical contribution of the current study is the testing of agency theory towards practices of corporate governance mechanisms on FRQ and FP in the context of the textile sector.

Details

Research Journal of Textile and Apparel, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1560-6074

Keywords

Content available
Article
Publication date: 8 July 2022

Isam Saleh, Yahya Marei, Maha Ayoush and Malik Muneer Abu Afifa

Big Data analytics (BDA) and its implications for the accounting profession continue to be a key issue that requires more research and evaluation. As a result, the purpose of this…

3550

Abstract

Purpose

Big Data analytics (BDA) and its implications for the accounting profession continue to be a key issue that requires more research and evaluation. As a result, the purpose of this study is to evaluate the impact of BDA on financial reporting quality, as well as to assess the accounting challenges associated with Big Data. It provides qualitative evidence from Canada.

Design/methodology/approach

This study used a qualitative approach to ascertain the thoughts and perceptions of auditors, financial analysts and accountants at Canadian audit and accounting firms in BDA and its impact on financial reporting quality, using semi-structured interviews. To obtain their consent to participate in the interview, 127 auditors, financial analysts and accountants from Canadian audit and accounting firms were initially approached. The final number of respondents was 41, representing a response rate of 32%.

Findings

The authors’ findings underscored the relevance of Big Data and BDA in affecting financial report quality and revealed that BDA had a significant effect on improving financial reporting quality. Big Data improves accounting reporting and expert judgment by providing professional. In summary, participants agreed that when analytical methods in Big Data are implemented effectively, businesses may possibly achieve a variety of benefits, including customized goods, simplified processes, improved risk assessment process and, finally, increased risk management.

Practical implications

The authors’ findings indicate that BDA may help predict investment returns and risks, estimate future investment opportunities, forecast revenues, detect fraud and susceptibility early and identify economic growth opportunities. As a result, auditors, financial analysts, accountants, investors and other strategic decision-makers should be aware of these findings to make informed choices.

Originality/value

Big Data has become the norm in recent years; accountants and other decision-makers have struggled to analyze massive amounts of data. This limits their capacity to profit from such data even more. Therefore, this study is motivated by the lack of research on Big Data’s influence on financial report quality.

Details

Journal of Financial Reporting and Accounting, vol. 21 no. 1
Type: Research Article
ISSN: 1985-2517

Keywords

Article
Publication date: 15 April 2019

Fuad Rakhman

The purpose of this paper is to investigate factors affecting budget implementation among local governments in Indonesia, where rules are relatively strict and risks of facing…

1098

Abstract

Purpose

The purpose of this paper is to investigate factors affecting budget implementation among local governments in Indonesia, where rules are relatively strict and risks of facing corruption charges are high.

Design/methodology/approach

This study employs regression analyses using a sample of 1,151 local government-years.

Findings

This study finds that the level of budget implementation is affected by the leadership factors (i.e. mayors’ term, tenure and age) and the proportion of capital expenditures. The level of budget implementation is relatively lower when the mayor is in the second term, is in the early years of the five-year tenure and is over 60 years old. Higher proportion of capital expenditures also reduces the level of budget implementation.

Originality/value

This study contributes to the literature by presenting empirical evidence as to what factors explain the variations in the level of budget implementation among local governments especially under strict rules and a risky environment.

Details

Asian Review of Accounting, vol. 27 no. 2
Type: Research Article
ISSN: 1321-7348

Keywords

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