2020_State Audit Board and The Performance of Regional Government-Linked Companies in The Republic of Indonesia
| Format: | General Document |
|---|
| _version_ | 1860798061115080704 |
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| building | INTELEK Repository |
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| collectionurl | https://intelek.unisza.edu.my/intelek/pages/search.php?search=!collection3 |
| copyright | Copyright©PWB2025 |
| country | Malaysia |
| date | 2020-08-16 |
| format | General Document |
| id | 15711 |
| institution | UniSZA |
| internalnotes | Sila masukkan subject wajib Dissertations, Academic. Terima kasih... |
| originalfilename | 15711_d80579053b1027b.pdf |
| person | Donal Devi Amdanata |
| recordtype | oai_dc |
| resourceurl | https://intelek.unisza.edu.my/intelek/pages/view.php?ref=15711 |
| sourcemedia | Server storage Scanned document |
| spelling | 15711 https://intelek.unisza.edu.my/intelek/pages/view.php?ref=15711 https://intelek.unisza.edu.my/intelek/pages/search.php?search=!collection3 General Document Malaysia Library Staff (Top Management) Library Staff (Management) Library Staff (Support) Terengganu Faculty of Business and Management English application/pdf 1.5 Donal Devi Amdanata Server storage Scanned document Universiti Sultan Zainal Abidin UniSZA Private Access Universiti Sultan Zainal Abidin SAMBox 2.3.4; modified using iTextSharp™ 5.5.10 ©2000-2016 iText Group NV (AGPL-version) Copyright©PWB2025 339 2020-08-16 15711_d80579053b1027b.pdf State Audit Board Performance Of Regional Government-Linked Companies Republic Of Indonesia Audit Board of Indonesia Government business enterprises Governmental investigations Government accountability Corporate governance 2020_State Audit Board and The Performance of Regional Government-Linked Companies in The Republic of Indonesia The 1997 Asian economic crisis has resulted in the establishment of a National Committee on Governance (NCG) in Indonesia. One of the outcomes of the crisis was regional autonomy where each provincial government was authorized to generate income through business activities. Thus, state-owned Regional Government-Linked Companies (RGLCs) were established under the local government. Since its establishment the performance of these profit oriented RGLCs has been a major concern and State Audit Board (SAB) was created to perform the external audit of the RGLCs. SAB conducts three types of audit, namely financial audit, performance audit and audits for specific purpose. The main role of SAB is to examine the state finances of RGLCs and monitor the implementation of audit recommendations. This study examines the effects of SAB, government programs, the board of directors’ expertise, type of capital and government connections on the performance of RGLCs with government regulation as a mediating variable. The quantitative method using survey questionnaire was used to collect the data. There are 426 RGLCs in Indonesia and a total of 57 non-bank RGLCs were involved in this study after eliminating those which do not meet the selection criteria. Six types of respondents were selected from each of the sampled RGLCs representing Directors, Financial Managers, Accounting Managers, Audit Committee members, Internal Supervisory Units, Financial or Accounting Supervisors and financial or accounting staff. Accounting experts, state auditors, and directors of RGLCs and former directors of the RGLCs were involved in building the questionnaire. A pilot study was conducted before the questionnaire was distributed to 342 respondents. A total of 290 (85%) of the questionnaire was returned. However, only 209 (61%) of the RGLCs was audited by SAB and answered the questionnaire completely. This study used SmartPLS for the data analysis. Based on multiple regression analysis the findings suggest that the audits of SAB have mixed effects on the RGLCs’ performance. The financial audit does not affect performance while the compliance audits have a significant positive effect. Similarly, government regulations contribute positively to performance whereas government connections negatively impacted the RGLCs’ performance. The findings also show mixed results on the mediating role of government regulation. Although the findings of the research are mixed, this study suggests that the SAB’s audits of RGLCs should be continued since the compliance audit positively contributes to the RGLCs’ performance. Various government entities associated with the RGLCs and SAB should establish effective communication with RGLCs. The regional government as the owner of the RGLCs must strive to strengthen the governance of the RGLCs. Local governments should continue to get SAB involved in improving RGLCs’ compliance to strengthen performance. Additionally, the central government and SAB should produce audit guidelines and procedures for the purpose of audit of government institutions to improve the effectiveness of the RGLCs’ audit. Dissertations, Academic Sila masukkan subject wajib Dissertations, Academic. Terima kasih... Thesis |
| spellingShingle | 2020_State Audit Board and The Performance of Regional Government-Linked Companies in The Republic of Indonesia |
| state | Terengganu |
| subject | Audit Board of Indonesia Government business enterprises Governmental investigations Government accountability Corporate governance Dissertations, Academic |
| summary | The 1997 Asian economic crisis has resulted in the establishment of a National Committee on Governance (NCG) in Indonesia. One of the outcomes of the crisis was regional autonomy where each provincial government was authorized to generate income through business activities. Thus, state-owned Regional Government-Linked Companies (RGLCs) were established under the local government. Since its establishment the performance of these profit oriented RGLCs has been a major concern and State Audit Board (SAB) was created to perform the external audit of the RGLCs. SAB conducts three types of audit, namely financial audit, performance audit and audits for specific purpose. The main role of SAB is to examine the state finances of RGLCs and monitor the implementation of audit recommendations. This study examines the effects of SAB, government programs, the board of directors’ expertise, type of capital and government connections on the performance of RGLCs with government regulation as a mediating variable. The quantitative method using survey questionnaire was used to collect the data. There are 426 RGLCs in Indonesia and a total of 57 non-bank RGLCs were involved in this study after eliminating those which do not meet the selection criteria. Six types of respondents were selected from each of the sampled RGLCs representing Directors, Financial Managers, Accounting Managers, Audit Committee members, Internal Supervisory Units, Financial or Accounting Supervisors and financial or accounting staff. Accounting experts, state auditors, and directors of RGLCs and former directors of the RGLCs were involved in building the questionnaire. A pilot study was conducted before the questionnaire was distributed to 342 respondents. A total of 290 (85%) of the questionnaire was returned. However, only 209 (61%) of the RGLCs was audited by SAB and answered the questionnaire completely. This study used SmartPLS for the data analysis. Based on multiple regression analysis the findings suggest that the audits of SAB have mixed effects on the RGLCs’ performance. The financial audit does not affect performance while the compliance audits have a significant positive effect. Similarly, government regulations contribute positively to performance whereas government connections negatively impacted the RGLCs’ performance. The findings also show mixed results on the mediating role of government regulation. Although the findings of the research are mixed, this study suggests that the SAB’s audits of RGLCs should be continued since the compliance audit positively contributes to the RGLCs’ performance. Various government entities associated with the RGLCs and SAB should establish effective communication with RGLCs. The regional government as the owner of the RGLCs must strive to strengthen the governance of the RGLCs. Local governments should continue to get SAB involved in improving RGLCs’ compliance to strengthen performance. Additionally, the central government and SAB should produce audit guidelines and procedures for the purpose of audit of government institutions to improve the effectiveness of the RGLCs’ audit. |
| title | 2020_State Audit Board and The Performance of Regional Government-Linked Companies in The Republic of Indonesia |
| title_full | 2020_State Audit Board and The Performance of Regional Government-Linked Companies in The Republic of Indonesia |
| title_fullStr | 2020_State Audit Board and The Performance of Regional Government-Linked Companies in The Republic of Indonesia |
| title_full_unstemmed | 2020_State Audit Board and The Performance of Regional Government-Linked Companies in The Republic of Indonesia |
| title_short | 2020_State Audit Board and The Performance of Regional Government-Linked Companies in The Republic of Indonesia |
| title_sort | 2020_state audit board and the performance of regional government-linked companies in the republic of indonesia |