Influence factors on financial statements disclosure of Indonesian local governments

This study aims to examine the factors that affect the level of disclosure of local government financial reports. This paper uses such independent variables as budget expenditure of the local government, government size, and capital expenditure. The financial records of Indonesian local governments that have undergone audit by the supreme agency are analyzed in this study. For the 2020 timeframe, 485 local/city governments in Indonesia served as the research samples, and purposive sampling was employed as the sampling method. SPSS is utilized to support multiple linear regression, which is the data analysis method used in this study. The test findings revealed that budget expenditure (β = 0.274; p < 0.05), government size (β = 0.216; p < 0.05), and capital expenditure (β = 0.178; p < 0.05) have a significant effect on the level of local government financial statements disclosure. It is envisaged that the findings of this study would enable local governments, particularly districts or cities, to better maximize the disclosure of local government financial statements in compliance with government regulation. Local governments will be able to open up information that is easily accessible with the aid of ever-improving technology.