Article Sidebar

Download
PDF
Statistic
Read Counter : 231 Download : 267

Main Article Content

Abstract

Good government performance can increase organizational value, legitimacy, public support and also increase organizational survival. However, the performance of local governments based on HDI is still not good and places Indonesia below ASEAN countries such as: Singapore, Brunei Darussalam, Malaysia and Thailand. This study aims to examine the effect of corruption on local government performance, where this research was conducted on 34 provincial governments in Indonesia during the 2016-2020 period. This research is interesting because it has novelty in terms of measuring local government performance and corruption. Local government performance is measured using the Human Development Index whose data comes from BPS-RI and corruption is measured by the value of the rupiah audit findings by BPK-RI on budget implementation and efforts to fight corruption. The test results using panel data regression with the fixed effect model show that corruption has a positive and significant influence on local government performance.

Keywords

Corruption Local Government Performance

Article Details

How to Cite
Khairudin, K., Rahmawati, R., Winarna, J., & Gantyowati, E. (2023). Does Corruption Have a Bad Impact on Local Government Performance. Ilomata International Journal of Social Science, 4(1), 18-29. https://doi.org/10.52728/ijss.v4i1.671

References

  1. Ahmad, N., & Ali, S. (2010). Corruption and Financial Sector Performance: A Cross-Country Analysis. Economics Bulletin, 30(1), 303–308.
  2. Ahyaruddin, M., & Amrillah, M. F. (2018). Faktor Penentu Kinerja Pemerintah Daerah. Jurnal Akuntansi Multiparadigma, 9(3), 471–468. https://doi.org/10.18202/jamal.2018.04.9028
  3. Alfada, A. (2019). The Destructive Effect of Corruption on Economic Growth in Indonesia: A Threshold Model. Heliyon, 5(10), 152–169. https://doi.org/10.1016/j.heliyon.2019.e02649
  4. Ashworth, R., Boyne, G., & Delbridge, R. (2009). Escape from the Iron Cage? Organizational Change and Isomorphic Pressures in the Public Sector. Journal of Public Administration Research and Theory, 19(1), 165–187. https://doi.org/10.1093/jopart/mum038
  5. Athanasouli, D., & Goujard, A. (2015). Corruption and Management Practices: Firm Level Evidence. Journal of Comparative Economics, 43(4), 1014–1034. https://doi.org/10.1016/j.jce.2015.03.002
  6. Beeri, I., Uster, A., & Vigoda-Gadot, E. (2019). Does Performance Management Relate to Good Governance? A Study of Its Relationship with Citizens’ Satisfaction with and Trust in Israeli Local Government. Public Performance & Management Review, 42(2), 241–279. https://doi.org/10.1080/15309576.2018.1436074
  7. Bergman, M., & Lane, J.-E. (1990). Public Policy in a Principal-Agent Framework. Journal of Theoretical Politics, 2(3), 339–352. https://doi.org/10.1177/0951692890002003005
  8. Blackburn, K., & Powell, J. (2011). Corruption, inflation and growth. Economics Letters, 113(3), 225–227. https://doi.org/10.1016/j.econlet.2011.06.015
  9. Blume, L., & Voigt, S. (2011). Does organizational design of supreme audit institutions matter? A cross-country assessment. European Journal of Political Economy, 27(2), 215–229. https://doi.org/10.1016/j.ejpoleco.2010.07.001
  10. Bologna, J. (1993). Handbook on Corporate Fraud. U.S. Department of Justice-Office of Justice Programs.
  11. Bone, H. (2017). The Effects of Financial and Non-Financial Performances towards The Managerial Performances with Interpersonal Trust as a Mediation Variable. International Journal of Law and Management, 59(6), 1190–1202. https://doi.org/10.1108/ijlma-08-2016-0072
  12. BPKRI. (2019). Ikhtisar Hasil Pemeriksaan Semester II Tahun 2018. Pusat Informasi dan Komunikasi-Badan Pemeriksa Keuangan Republik Indonesia.
  13. Brusca, I., & Montesinos, V. (2016). Implementing Performance Reporting in Local Government: A Cross-Countries Comparison. Public Performance & Management Review, 39(3), 506–534. https://doi.org/10.1080/15309576.2015.1137768
  14. Chen, C., Liu, C., & Lee, J. (2020). Corruption and the quality of transportation infrastructure: Evidence from the US states. International Review of Administrative Sciences, 002085232095318. https://doi.org/10.1177/0020852320953184
  15. Christensen, J. G. (1992). Hierarchical and Contractual Approaches to Budgetary Reform. Journal of Theoretical Politics, 4(1), 67–91. https://doi.org/10.1177/0951692892004001004
  16. D’Agostino, G., Dunne, J. P., & Pieroni, L. (2016). Government Spending, Corruption and Economic Growth. World Development, 84(3), 190–205. https://doi.org/10.1016/j.worlddev.2016.03.011
  17. Desbordes, R., & Wei, S. J. (2017). The Effects of Financial Development on Foreign Direct Investment. Journal of Development Economics, 127, 153–168. https://doi.org/10.1016/j.jdeveco.2017.02.008
  18. Habib, S., Abdelmonen, S., & Khaled, M. (2020). The Effect of Corruption on The Environmental Quality in African Countries: a Panel Quantile Regression Analysis. Journal of the Knowledge Economy, 11(2), 788–804. https://doi.org/10.1007/s13132-018-0571-8
  19. Halim, A., & Abdullah, S. (2006). Hubungan dan Masalah Keagenan di Pemerintahan Daerah: Sebuah Peluang Penelitian Anggaran dan Akuntansi. Jurnal Akuntansi Pemerintahan, 2(1), 53–64.
  20. Hermawan, S., & Maf’ulah, A. N. (2014). Pengaruh Kinerja Keuangan Terhadap Nilai Perusahaan Dengan Pengungkapan Corporate Social Rensponsibility Sebagai Variabel Pemoderasi. Jurnal Dinamika Akuntansi, 6(2), 103–118. https://doi.org/10.15294/jda.v6i2.3250
  21. Huang, C. J. (2016). Is Corruption Bad for Economic Growth? Evidence from Asia-Pacific Countries. North American Journal of Economics and Finance, 35(100), 247–256. https://doi.org/10.1016/j.najef.2015.10.013
  22. Hutapea, H. L., & Widyaningsih, A. (2017). Pengaruh Good Government Governance Dan Ukuran Legislatif Terhadap Kinerja Pemerintah Daerah (Studi Pada Pemerintah Provinsi Di Indonesia). Jurnal ASET (Akuntansi Riset), 9(1), 173–186. https://doi.org/10.17509/jaset.v9i1.5446
  23. Jensen, M. C., & Meckling, W. H. (1976). Theory of The Firm: Managerial Behavior, Agency Costs and Ownership Structure. Journal of Financial Economics, 3(4), 305–360. https://doi.org/10.1016/0304-405X(76)90026-X
  24. Kaufmann, D., & Kraay, A. (2019). Worldwide governance indicators. Word Bank.
  25. Klitgaard, R. (1988). Controlling Corruption. University of California Press.
  26. KPK. (2019). Laporan Tahunan KPK 2018. Komisi Pemberantasan Korupsi.
  27. KPK. (2022). Laporan Tahunan KPK 2021. Komisi Pemberantasan Korupsi.
  28. Kurniati, S. (2019). Stock Returns and Financial Performance as Mediation Variables in the Influence of Good Corporate Governance on Corporate Value. Corporate Governance, 19(6), 1289–1309. https://doi.org/10.1108/CG-10-2018-0308
  29. Kurniawan, Y., Ratnasari, R. T., & Mustika, H. (2020). The corruption and human development to the economic growth of OIC countries. JEBIS: Jurnal Ekonomi Dan Bisnis Islam, 6(2), 189–200.
  30. Luo, Y. (2002). Corruption and Organization. Asia Pacific Journal of Management, 19, 405–422. https://doi.org/10.1023/A:1016252021370
  31. Maqbool, S., & Zamir, N. (2020). Corporate Social Responsibility and Institutional Investors: The Intervening Effect of Financial Performance. Journal of Economic and Administrative Sciences, 37(2), 238–252. https://doi.org/10.1108/jeas-08-2019-0089
  32. Mardiasmo. (2009). Akuntansi Sektor Publik. Andi.
  33. Moe, T. M. (1984). The New Economics of Organization. American Journal of Political Science, 28(4), 739–777.
  34. Moldogaziev, T. T., & Liu, C. (2021). Public sector corruption and perceived government performance in transition. Governance, 34(2), 475–504. https://doi.org/10.1111/gove.12519
  35. Nadeem, M. A., Liu, Z., Zulfiqar, S., Younis, A., & Xu, Y. (2021). Does corruption impede innovation in developing economies? Insights from Pakistan: a call for policies reforms. Crime, Law and Social Change, 75(2), 93–117. https://doi.org/10.1007/s10611-020-09927-w
  36. Paeleman, I., & Vanacker, T. (2015). Less is More, or Not? On the Interplay between Bundles of Slack Resources, Firm Performance and Firm Survival. Journal of Management Studies, 52(6), 819–848. https://doi.org/10.1111/joms.12135
  37. Pook, L. A. (2008). Impact of Corruption on The Development of Information and Communications Infrastructures in Bulgaria and Romania. Journal of East-West Business, 14(1), 101–113. https://doi.org/10.1300/J097v14n01_05
  38. Rasul, S. (2009). Penerapan good governance di Indonesia dalam upaya pencegahan tindak pidana korupsi. Mimbar Hukum - Fakultas Hukum Universitas Gadjah Mada, 21(3), 538–553. https://doi.org/10.20303/jmh.v21i3.318
  39. Rock, M. T. (2009). Corruption and democracy. The Journal of Development Studies, 45(1), 55–75. https://doi.org/10.1080/00220380802468579
  40. Romano, G., Masserini, L., & Lombardi, G. V. (2021). Environmental performance of waste management: Impacts of corruption and public maladministration in Italy. Journal of Cleaner Production, 288(4), 125–139. https://doi.org/10.1016/j.jclepro.2020.125521
  41. Scott, W. R. (2015). Financial Accounting Theory (7th Editio). Prentice-Hall.
  42. Sharma, C., & Mitra, A. (2015). Corruption, Governance and Firm Performance: Evidence from Indian Enterprises. Journal of Policy Modeling, 37(5), 835–851. https://doi.org/10.1016/j.jpolmod.2015.05.001
  43. Sheng, J., Han, X., Zhou, H., & Miao, Z. (2016). Effects of corruption on performance: Evidence from the UN-REDD Programme. Land Use Policy, 59, 344–350. https://doi.org/10.1016/j.landusepol.2016.09.014
  44. Sinha, A., Gupta, M., Shahbaz, M., & Sengupta, T. (2019). Impact of corruption in public sector on environmental quality: Implications for sustainability in BRICS and next 11 countries. Journal of Cleaner Production, 232(4), 1379–1393. https://doi.org/10.1016/j.jclepro.2019.06.066
  45. Smith, A. (1776). An Inquiry into the Nature and Causes of the Wealth of Nations. Modern Library.
  46. Smith, R. W., & Bertozzi, M. (1996). Principals and agents: an explanatory model for public budgeting. Journal of Public Budgeting, Accounting & Financial Management, 10(3), 325–353. https://doi.org/10.1108/JPBAFM-10-03-1998-B001
  47. Strom, K. (2000). Delegation and accountability in parliamentary democracies. European Journal of Political Research, 37(1), 261–289. https://doi.org/10.1023/A:1007064803327
  48. Sundström, A. (2016). Corruption and Violations of Conservation Rules: A Survey Experiment with Resource Users. World Development, 85, 73–83. https://doi.org/10.1016/j.worlddev.2016.04.011
  49. Timmons, J. F., & Garfias, F. (2015). Revealed Corruption, Taxation, and Fiscal Accountability: Evidence from Brazil. World Development, 70(2), 13–27. https://doi.org/10.1016/j.worlddev.2014.12.011
  50. UNDP. (2019). Human Development Report 2019. UNDP.
  51. Weitz-Shapiro, R. (2008). The local connection: Local government performance and satisfaction with democracy in Argentina. Comparative Political Studies, 41(3), 285–308. https://doi.org/10.1177/0010414006297174
  52. Zhang, J., Quan, S., & Jiang, J. (2019). Corruption and private firms’ survival in transition economies: Evidence from China. China Economic Review, 57, 101339. https://doi.org/10.1016/j.chieco.2019.101339