Influence of Government Financial Performance Regions on Capital Expenditure in Six Provinces of Java Island

The aim of this research is to find out how financial performance influences capital expenditure. This research has one dependent variable, capital expenditure, and four independent variables: the independence ratio, effectiveness ratio, efficiency ratio, and fiscal decentralization degree ratio. The research sample consisted of six provinces on the island of Java, namely Banten, DKI Jakarta, West Java, Central Java, DI Yogyakarta, and East Java. The author uses quantitative research and secondary data from the Central Provincial Statistics Agency for the 2006-2021 period. The analysis technique used in this research is panel data regression. In the panel data regression results, the selected model is the Fixed Effect Model. The results show that the partial independence ratio, effectiveness ratio, efficiency ratio, and fiscal decentralization degree ratio influence capital expenditure.