Public Financial Management Capability and Financial Performance in Municipal and Regency Public-Sector Organizations: Evidence from Bekasi, Indonesia
DOI:
https://doi.org/10.59890/ijsr.v4i5.14Keywords:
Public Financial Management, Budget Planning, Financial Reporting, Local Government of Bekasi, SmartPLSAbstract
This study examines how public financial management capabilities influence financial performance among public-sector organizations in Bekasi area, Indonesia. Using a cross-sectional quantitative survey dataset of 120 respondents from twelve municipal and regency agencies. The data were processed using a SmartPLS-style composite-based modelling procedure with 5,000 bootstrap subsamples. The descriptive results show that the overall public financial management index is good (M = 3.643), although transparency records the lowest construct mean (M = 3.402). The structural model explains 28.5% of the variance in financial performance (R² = 0.285; Q²predict = 0.215). Budget planning (β = 0.268, p = 0.005) and financial reporting (β = 0.232, p = 0.023) significantly improve financial performance, while transparency shows an indicative effect at the 10% level (β = 0.180, p = 0.063). Budget implementation, accountability, and internal control do not show significant direct effects in the model. The findings highlight the strategic importance of evidence-based budget planning and timely, accurate reporting as mechanisms for strengthening public-sector financial performance in local government settings.
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