Author

  • Muhammad Syauqi Qur’ani Putra Ariva

    • Universitas Pembangunan Nasional Veteran Jakarta, Indonesia
    • Indonesia

  • Ermawati

    • Universitas Pembangunan Nasional Veteran Jakarta, Indonesia
    • Indonesia

Abstract

This study is based on the high levels of corruption occurring in Indonesia, indicated by the low level of the Corruption Perception Index (CPI). The majority of corruption cases occurring in Indonesia involves local governmental institutions. The high levels of corruption in local governments is related to government size, fiscal decentralization, and audit findings. The aim of this study is to determine the factors that cause the high levels of corruption in local governments. This study uses the agency theory as theoretical basis to formulate a framework of thought that connects government size, fiscal decentralization, audit findings, and corruption levels. The result of this study shows that the variables of government size, fiscal decentralization, audit findings, all have significant effects towards corruption levels. Fiscal decentralization and audit findings have a negative effect towards corruption level, while the government size variable has a positive effect on corruption levels. This study provides contribution to the practices of auditing, government execution, law enforcement, and corruption control initiatives in local governments in Indonesia.

Keywords

References

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How to Cite

Ariva, M. S. Q. P., & Ermawati. (2020). Determinants Influencing the Level of Corruption in Indonesia Local Governments. Journal of Economics and Behavioral Studies, 12(4(J), 34-42. https://doi.org/10.22610/jebs.v12i4(J).3059

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Research Paper

Published in

Vol. 12 No. 4(J) (2020) Governance, Fiscal Policy & Institutional Performance View issue contents

Published

2020-09-06

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