Performance of Regional Government-Linked Companies in Indonesia: the influence of State Audit Board and regulations

Amdanata, Donal Devi and Noorhayati Mansor, (2020) Performance of Regional Government-Linked Companies in Indonesia: the influence of State Audit Board and regulations. Jurnal Pengurusan, 58 . pp. 1-13. ISSN 0127-2713

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Official URL: http://ejournal.ukm.my/pengurusan/issue/view/1283

Abstract

Regional Government-Linked Companies (RGLCs) in Indonesia have suffered from the unhealthy image and loss of respect from the public. The RGLCs are incapable of independently running the companies without financial support from the government. Accordingly, this research determines the effects of audits conducted by the State Audit Board of the Republic of Indonesia on the performance of RGLCs. This study also examines the influence of regulations on the RGLCs’. Agency theory and resource dependence theory provide the bases in developing the proposed hypotheses. The survey questionnaire was used to collect primary data. A total number of 57 out of 113 RGLCs (50.44%) made up the final sample. Each RGLC represented by six respondents, and the total final sample size was 342. The results provide new evidence that the financial audit does not affect the performance of RGLCs, while the Compliance audit indicates a positive effect on the performance of these RGLCs.

Item Type:Article
Keywords:Regional Government-Linked Companies; State auditor; Agency theory; Resources dependence theory
Journal:Jurnal Pengurusan
ID Code:15653
Deposited By: ms aida -
Deposited On:10 Nov 2020 04:03
Last Modified:13 Nov 2020 02:54

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