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THE INFLUENCE OF CAPITAL EXPENDITURE, ECONOMIC GROWTH, AND FISCAL STRESS ON LOCAL GOVERNMENT FINANCIAL PERFORMANCE

Jurnal Cakrawala Akuntansi · Vol. 17 No. 1 (2025) · pp. 23–38

DOI
10.22437/jca.v17i1.46767
ISSN
3123-1918, 1979-4851
Published
2025-02-01
Publisher
Faculty of Economics and Business Universitas Jambi
Language
en
License
creativecommons.org/licenses/by/4.0

Abstract

This study investigates the influence of capital expenditure, economic growth, and fiscal stress on the financial performance of Regency/City Governments in Jambi Province from 2017 to 2023. The background of this research lies in the disparity of financial performance across regions and the growing fiscal pressures faced during and after the COVID-19 pandemic. Using a quantitative approach, the study employed secondary data from the Audit Reports of the Supreme Audit Agency and analyzed them using multiple regression. The findings reveal that capital expenditure and fiscal stress have a positive and significant impact on regional financial performance, whereas economic growth has no substantial influence. These results suggest that local governments’ financial outcomes are more sensitive to internal fiscal management than to macroeconomic changes. The study implies that increasing capital investment and effectively managing fiscal stress can enhance financial performance, and offers recommendations for policy and future research to support sustainable regional financial governance

Keywords

Collaboration network of the authors

40 authors · 111 co-authorship links · 2 across different organisations · showing the 40 most connected

Hover or tap a name to highlight its co-authors. Double-click to open the author's page.

  • Hasanuddin University
  • Universitas Halu Oleo
  • State University of Makassar
  • Affiliation unknown
  • Different organisations
  • Same organisation
  • Affiliation unknown
  • Thicker line = more joint articles · bigger circle = more articles
Show as table
Co-authorOrganisationJoint articles
Sri RahayuHasanuddin University9
RAHAYU RAHAYUUniversitas Halu Oleo8
Misni ErwatiAffiliation unknown5
Lutfi LutfiState University of Makassar2
Wiralestari WiralestariAffiliation unknown2
Muhammad RidwanHasanuddin University2
Salman JumailiAffiliation unknown2
Rico WijayaAffiliation unknown2
Wiwik TiswiyantiAffiliation unknown2
Rita FriyaniAffiliation unknown2
Bagus KisworoAffiliation unknown1
Selvia Lisa AsniAffiliation unknown1
Sumarni SumarniHasanuddin University1
Haryadi HaryadiAffiliation unknown1
Wirmie Eka PutraAffiliation unknown1
Yuliana YulianaAffiliation unknown1
Wiwiek TiswiyantiAffiliation unknown1
Dewi fitrianiAffiliation unknown1
Widya Sari WendryAffiliation unknown1
Ferdiaz SaudagarAffiliation unknown1
Enggar D. P. ArumAffiliation unknown1
Istiqomah MalindaAffiliation unknown1
Hamzah HamzahAffiliation unknown1
Rainiyati RainiyatiAffiliation unknown1
Muhammad Hafidz Ibnu KhaldunAffiliation unknown1
Shofia AminAffiliation unknown1
Sigit IndrawijayaAffiliation unknown1
Feny TialonawarmiAffiliation unknown1
Try SyeftianiAffiliation unknown1
Zazatia ZazatiaAffiliation unknown1
Angga PratamaAffiliation unknown1
Rifal Dwi PutraAffiliation unknown1
Ghaly Naufal Hady OctamaAffiliation unknown1
Atifa ZulfaAffiliation unknown1
Riri Cofantry AnaguswaAffiliation unknown1
Dica Lady SilveraAffiliation unknown1
Daniel Siswanto LubisAffiliation unknown1

Affiliations come from OpenAlex; journal OAI-PMH metadata carries none. Authors without an OpenAlex ID are matched by name, which can merge or split people.

Metadata source: OAI-PMH (metadata jurnal) https://online-journal.unja.ac.id/index.php/jca/oai, first harvested 6 Nov 2026, last seen 8 Nov 2026.
Original metadata (oai_dc) 
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	<dc:title xml:lang="en">THE INFLUENCE OF CAPITAL EXPENDITURE, ECONOMIC GROWTH, AND FISCAL STRESS ON LOCAL GOVERNMENT FINANCIAL PERFORMANCE</dc:title>
	<dc:creator xml:lang="en">Susanti, Susi</dc:creator>
	<dc:creator xml:lang="en">Sam, Iskandar</dc:creator>
	<dc:creator xml:lang="en">Yudi, Yudi</dc:creator>
	<dc:subject xml:lang="en">Capital Expenditure</dc:subject>
	<dc:subject xml:lang="en">Economic Growth</dc:subject>
	<dc:subject xml:lang="en">Fiscal Stress</dc:subject>
	<dc:subject xml:lang="en">Financial Performance</dc:subject>
	<dc:description xml:lang="en">This study investigates the influence of capital expenditure, economic growth, and fiscal stress on the financial performance of Regency/City Governments in Jambi Province from 2017 to 2023. The background of this research lies in the disparity of financial performance across regions and the growing fiscal pressures faced during and after the COVID-19 pandemic. Using a quantitative approach, the study employed secondary data from the Audit Reports of the Supreme Audit Agency and analyzed them using multiple regression. The findings reveal that capital expenditure and fiscal stress have a positive and significant impact on regional financial performance, whereas economic growth has no substantial influence. These results suggest that local governments’ financial outcomes are more sensitive to internal fiscal management than to macroeconomic changes. The study implies that increasing capital investment and effectively managing fiscal stress can enhance financial performance, and offers recommendations for policy and future research to support sustainable regional financial governance</dc:description>
	<dc:publisher xml:lang="en">Faculty of Economics and Business Universitas Jambi</dc:publisher>
	<dc:date>2025-02-01</dc:date>
	<dc:type>info:eu-repo/semantics/article</dc:type>
	<dc:type>info:eu-repo/semantics/publishedVersion</dc:type>
	<dc:format>application/pdf</dc:format>
	<dc:identifier>https://online-journal.unja.ac.id/jca/article/view/46767</dc:identifier>
	<dc:identifier>10.22437/jca.v17i1.46767</dc:identifier>
	<dc:source xml:lang="en">Jurnal Cakrawala Akuntansi; Vol. 17 No. 1 (2025): Jurnal Cakrawala Akuntansi ; 23-38</dc:source>
	<dc:source>3123-1918</dc:source>
	<dc:source>1979-4851</dc:source>
	<dc:language>en</dc:language>
	<dc:relation>https://online-journal.unja.ac.id/jca/article/view/46767/25477</dc:relation>
	<dc:rights xml:lang="en">Copyright (c) 2025 Susi Susanti, Iskandar Sam, Yudi</dc:rights>
	<dc:rights xml:lang="en">https://creativecommons.org/licenses/by/4.0</dc:rights>
</oai_dc:dc>