THE EFFECT OF ORIGINAL REGIONAL INCOME, BALANCE FUND, CAPITAL EXPENDITURE AND ECONOMIC GROWTH ON THE FINANCIAL PERFORMANCE OF LOCAL GOVERNMENTS IN BALI

ABSTRACT: This study aims to determine the effect of local revenue, balance funds, capital expenditures andeconomic growth on the financial performance of the Denpasar City government in the 2009-2018 period. Thedata analysis technique used is multiple linear regression analysis. The results of the data analysis show thatlocal revenue has a positive and significant effect on the financial performance of local governments. Thisshows that the higher the local revenue obtained, the government’s financial performance will also increase.Balanced funds have a negative and significant impact on the financial performance of local governments. Thisshows that the higher the balance fund, the lower the financial performance will be. Capital expenditure andeconomic growth do not have a significant effect on the financial performance of local governments. This showsthat the higher or lower the capital expenditure and economic growth do not have a significant effect on thefinancial performance of local governments.

Keywords: Capital Expenditures, Balancing Funds, Financial Performance, Regional Original Income.Economic growth