Performance of Regional Government-Linked Companies in Indonesia: the influence of State Audit Board and regulations
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 a...
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| Main Authors: | , |
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| Format: | Article |
| Language: | English |
| Published: |
Penerbit Universiti Kebangsaan Malaysia
2020
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| Online Access: | http://journalarticle.ukm.my/15653/1/28879-130375-1-PB.pdf http://journalarticle.ukm.my/15653/ http://ejournal.ukm.my/pengurusan/issue/view/1283 |
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| Summary: | 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. |
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