Abstract

This study aims to analyze the effects of audit findings, follow-up of audit recommendations, quality of financial reporting and public services on the incumbent electability. Using subnational elections data in Indonesia in 2015 and 2017, the final sample amounted to 291 observations, which consisted of 11 provincial elections, 55 municipal elections, and 255 district elections. The results showed a negative effect of audit findings on the incumbent electability, as hypothesized. Further findings present the positive influences of the follow-up of audit recommendations, financial reporting quality on incumbent electability. The last result implies the originality of the study in which non-financial performance factor as proxied by the quality of public services in subnational entities in Indonesia are used as the basis for political decision-making by constituents to elect the incumbent or challenger. The practical implications are the need for subnational executives to pay attention to the importance of accounting and auditing practices as well as public service in increasing local community satisfaction and trust. The theoretical findings are insightful in providing mechanisms of government accounting management and the usefulness of public sector information in influencing electoral democracy in local governments in Indonesia. The novelty of this study is in the empirical examination to link auditing practices and its political consequences.

摘要

本研究旨在分析审计结果、审计建议的跟进、财务报告质量和公共服务对现任选举的影响。使用印度尼西亚 2015 年和 2017 年的地方选举数据，最终样本总计 291 次观察，其中包括 11 次省级选举、55 次市政选举和 255 次地区选举。结果表明，正如假设的那样，审计结果对现任选举产生负面影响。进一步的调查结果显示了审计建议的后续行动、财务报告质量对现任选举的积极影响。最后一个结果表明该研究的独创性，其中以印度尼西亚地方实体的公共服务质量为代表的非财务绩效因素被用作选民进行政治决策以选举现任者或挑战者的基础。实际意义是地方行政人员需要关注会计和审计实践以及公共服务在提高当地社区满意度和信任度方面的重要性。理论发现在提供政府会计管理机制和公共部门信息在影响印度尼西亚地方政府选举民主方面的有用性方面很有见地。本研究的新颖之处在于将审计实践与其政治后果联系起来的实证检验。