PENGARUH AKUNTABILITAS LAPORAN KEUANGAN PEMERINTAH DAERAH (LKPD) TERHADAP TINGKAT KORUPSI PEMERINTAH DAERAH DI INDONESIA

Abstract

The purpose of the study is to test empirically the influence of accountability of local government financial statements (audit opinion, the weakness of internal control systems, and non-compliance with provisions of laws) on the level of local government corruption in Indonesia. Agency theory assumes that there are many information asymmetries between the agents (local government) who have direct access to information by the principals (the public). The existence of information asymmetry that allows the occurrence of fraud or corruption by local government. Accountability of local government financial statements as a mechanism of checks and balances is believed to affect the level of local government corruption. This study uses secondary data from the audit results of the Badan Pemeriksa Keuangan Republik Indonesia to the financial statements of local government in 2008 and the research results of the Transparency International Indonesia on the Corruption Perception Index of local government in Indonesia. This study uses purposive sampling and using multiple linear regression analysis. Before being conducted the regression test, it is examined by using the classical assumption tests. These results indicate that the accountability of local government financial statements (audit opinion, the weakness of internal control systems, and non-compliance with provisions of laws) do not affect the level of local government corruption in Indonesia. These results need to be reviewed because there is no similar empirical study that support or contradict the results of this study