The Effect of Good Governance, Accounting Information Characteristics, Leadership Style, and Financial Compensation on Financial Administration

Abstract

This study examines the effect of good corporate governance, accounting information characteristics, leadership style, and financial compensation on financial administration at SKPD in Bima City Government. Furthermore, the study applies quantitatively with an associative approach. A causal relation was applied in order to determine the variables relationship. Moreover, the data were primary. The population consists of SKPD employees in all Bima City Government. The data were collected using purposive sampling. The sample was based on employees who have functional positions in financial administration such as Financial Administration Division, Expenditure Treasurer Division, and Technical Implementers. In line with that, 111 respondents from 37 SKPD were selected as samples. As a result, it shows that accounting financial characteristics and financial compensation have a positive effect on financial administration at SKPD Bima City Government. However, Good Governance and leadership style does not affect financial administration at SKPD Bima City Government. In addition, R-Square value shows 0.533. It means the model belongs to the moderate category. Therefore, Good Governance, accounting information characteristics, leadership style, and financial compensation can explain the effect of financial administration of SKPD for about 53.3%. Meanwhile 46.7% of financial administration of SKPD is explained by other variables outside the research.