Abstract:

Government financial statements are primary tools for transparency and accountability. However, government financial statements are still of lower quality than private entities, especially regarding disclosure. This study aims to determine whether the size and age of local governments affect the quality of disclosure in government financial reports. This study followed a quantitative explanatory approach. It employs a framework for government financial statement disclosure based on integrated reporting, comprehensively explaining capital, business processes, and value creation. The study sampled 28 local governments in West Java, Indonesia. The research period spans from 2016 to 2020. Data analysis was conducted using multiple linear regression with panel data. The research findings indicate that (1) local governments with larger asset sizes tend to have lower quality and (2) older local governments also tend to have better quality. These results suggest that (1) disclosure in government financial statements is influenced by the complexity of government business activities, in which bureaucracy makes it more difficult for the government to explain the business process, and (2) older local governments find it easier to explain activities in government financial statements due to the higher quantity and quality of resources and competencies available.

Keywords:

Integrated reporting, West Java, financial statements, Government size, government age.

How to Cite:

Arie Pratama, Nunuy Nur Afiah and Adhi Alfian. Does the Quality of Local Government Reporting Disclosure Get Better with Size and Age? Study in West Java Local Government, Indonesia. [ref]: vol.21.2023. available at: https://refpress.org/ref-vol21-a303/