Pengaruh Rasio Keuangan Daerah Terhadap Kinerja Keuangan Daerah Pemerintah Kabupaten/Kota di Provinsi Jawa Timur (Pada Masa Pandemi Covid-19 dan Sesudah Covid-19)

Abstrak

This study aims to analyze the effects of the Regional Financial Independence Ratio, Local Revenue
Effectiveness Ratio (PAD), Regional Expenditure Efficiency Ratio, Regional Expenditure Management
Ratio, Local Revenue Growth Ratio, and the Fiscal Decentralization Degree Ratio on local governments
financial performance. It also investigates the differences in financial performance during and after the
COVID-19 pandemic in regencies and cities across East Java Province. This quantitative research employs multiple linear regression analysis and paired samples test. The study uses secondary data from the regional budget realization reports (APBD), sourced from the official website of the Directorate General of Fiscal Balance (DJPK), Ministry of Finance of the Republic of Indonesia. The sample consists of 38 regencies and cities over the 2020–2023 period, with a total of 152 observations. The results indicate that only the Local Revenue Growth Ratio has a significant effect on financial performance, while simultaneously, all financial ratios show significant influence. These outcomes are interpreted through the mathematical logic of each ratio and supported by relevant previous research. Furthermore, the paires samples test reveals significant differences in financial performance between the pandemic and post-pandemic periods, indicating a decline after the pandemic. The findings underscore the crucial role of local revenue growth in enhancing financial performance and highlight the importance of adaptive fiscal recovery strategies in the post-pandemic era. This study may serve as an evaluative reference for local governments in formulating more effective and sustainable financial management policies.