COMPARATIVE ANALYSIS OF CENTRAL JAVA AND EAST JAVA PROVINCIAL GOVERNMENT FINANCIAL PERFORMANCE

Abstract

This research was intended to analyze financial performance 
and to determine differences in financial performance of the 
governments of Central Java and East Java Provinces in terms 
of local financial independence ratios, PAD effectiveness 
ratios, expenditure efficiency ratios, revenue growth ratios, 
SiLPA financing levels, audit opinions, and findings an audit. 
This research is a quantitative descriptive research with a 
comparative form (comparison). This research used secondary 
data in form of Budget Realization Report (LRA) and 
Inspection Result Report (LHP) of Central Java and East Java 
Provinces in the 2014-2018 Fiscal Year. Data analysis 
techniques using financial ratio analysis and analysis of 
different tests through the Independent Sample t-Test and 
Mann Whitney test. The results of this research indicate that 
there are differences in financial performance based on the 
number of audit findings. However, there is no difference in 
financial performance based on the ratio of regional financial 
independence, the effectiveness of PAD, expenditure efficiency, 
revenue growth, the level of SiLPA financing, and audit 
opinion on the Central Java and East Java provincial 
governments.