Gamayuni, Rindu Rika and Dharma, Fitra (2019) THE EFFECT OF FINANCIAL STATEMENTS QUALITY ON DECISION USEFULNESS FINANCIAL STATEMENTS AT LOCAL GOVERNMENTS IN LAMPUNG. In: The third inTraders international conference on international trade, 15-17 April 2019, Sakarya, Turkey.

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Abstract

Since 2015 government institutions in Indonesia must implement accrual-based accounting standards. Several years since its implementation, more and more local government financial reports have obtained qualified /unqualified opinions. The audit opinion is an indicator of local government financial statement’s quality. However, whether quality financial statements are useful in decision making This study is a quantitative study in the form of primary data using questionnaires in the local government in Lampung. The sample selection technique uses purposive sampling method, with the criteria of respondents structural/functional officials in agencies whose tasks are related to planning, finance and control. The questionnaire was distributed to 16 local governments with 826 respondents, but the questionnaire that received responses was only 295 respondents and had fulfilled the minimum number of respondents based on Isaac & Michael table. The method of hypothesis analysis in this study was tested by Structural Equation Modeling (SEM) with SmartPLS 3.2 software. The results in this study indicate that the quality of financial statements has a positive effect on the decision usefulness of financial statements of local governments in Lampung Province. It is evident that the quality of the financial statements of local governments throughout Lampung has a positive and significant effect on the decision usefulness of these financial statements in decision making. So that financial statements are concluded in addition to being a tool of accountability also used for decision making. The higher the quality of local government financial reports, the better decisions taken by local governments. So that it is expected that the regional governments in Lampung Province pay more attention to the quality of their financial statements.

Item Type:	Conference or Workshop Item (Paper)
Subjects:	H Social Sciences > H Social Sciences (General)
Divisions:	Fakultas Ekonomi dan Bisnis (FEB) > Prodi Akuntansi
Depositing User:	rindu rika
Date Deposited:	14 May 2019 08:27
Last Modified:	14 May 2019 08:27
URI:	http://repository.lppm.unila.ac.id/id/eprint/12821

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