Daftar Isi:
  • This study aims to test the influence of local government financial performance to the allocation of capital expenditure. The local government financial performance is measured by degree of decentralization, local financial dependence, degree of the contribution of BUMD, and SiLPA’s financing as the independent variable, the dependent variable is the allocation of capital expenditure. The population of this study is all the city government in South Sumatra, such as Palembang, Prabumulih, Pagar Alam, and Lubuklinggau year 2013-2015. The results of this study show that degree of decentralization, local financial dependence, and SiLPA’s financing have a significant influence on allocation of capital expenditure, but degree of the contribution of BUMD does not affect to the allocation of capital expenditure. Simultaneously, degree of decentralization, local financial dependence, degree of the contribution of BUMD, and SiLPA’s financing have significant effect to the allocation of capital expenditure.