Presenters: Maya Diana, Anim Rahmayati
Affiliation: UIN Raden Mas Said Surakarta
Room: 4 (Online)
ICIES News- At the 4th International Conference on Islamic Economics Studies (ICIES) 2024, researchers from UIN Raden Mas Said Surakarta presented an important study on the interplay between financial performance and community welfare. The research, titled “The Influence Of Financial Performance On Community Welfare Moderated By Performance Acceleration,” was delivered by Maya Diana and Anim Rahmayati.
The study investigates how financial performance impacts community welfare, with a specific focus on performance acceleration as a moderating variable. Community welfare is assessed using the Human Development Index (HDI), which encompasses life expectancy, education, and a decent standard of living. The financial performance of local governments is evaluated through two key metrics: the financial independence ratio and the effectiveness ratio of local revenue (PAD).
Key findings from the study include:
- Financial Independence Ratio: This metric has a positive effect on community welfare, indicating that greater financial independence of local governments contributes to improved community welfare.
- Effectiveness Ratio of Local Revenue: This ratio does not show a significant impact on community welfare.
- Moderation Regression Analysis (MRA): The analysis reveals that performance acceleration moderates the relationship between the financial independence ratio and community welfare. However, it does not moderate the relationship between the effectiveness ratio of local revenue and community welfare.
The research highlights that enhancing local financial performance, particularly by increasing the financial independence ratio, can significantly boost community welfare. Performance acceleration further strengthens this positive effect, underscoring the importance of improving financial management practices at the local government level.
The presentation emphasized the need for local governments to focus on financial independence and leverage performance acceleration strategies to achieve better community outcomes.