Good Governance, Internal Control, and Village Financial Management Performance: Examining the Moderating Effect of Tri Hita Karana in Denpasar City
Journal Title: Journal of Economics, Finance and Management Studies - Year 2024, Vol 7, Issue 10
Abstract
The village fund program in Indonesia is planned to support the development and implementation of the Village Government. The village fund program certainly requires village officials to be able to carry out accountable financial management. Village financial management must be managed properly in accordance with the principles of good governance and implement good internal control. However, in practice, there are still some irregularities that occur in village financial management, one of which has occurred in Denpasar City, Bali Province, Indonesia. These irregularities are generally committed by individuals who do not have good ethics and morals. Therefore, it is necessary to harmonize the concept of village government management with the cultural values of local wisdom that developed in Bali, one of which is the concept of Tri Hita Karana culture. Through a strong positive culture, it can undoubtedly produce good performance and achievement for each individual and organization. This study aims to examine the ability of Tri Hita Karana to moderate the effect of good governance and internal control on village financial management performance in Denpasar City. This study uses a quantitative approach using primary data. Data collection techniques with questionnaires. This research was conducted in all villages in Denpasar City. Sample determination using nonprobability sampling method with purposive sampling technique. The data analysis technique used was Moderated Regression Analysis (MRA). The results showed that good governance and internal control had a positive effect on village financial management performance. Tri Hita Karana culture cannot moderate the effect of good governance and internal control on village financial management performance in Denpasar City. The application of the principles of good governance and internal control can improve the effectiveness and efficiency of village financial management. Although the Tri Hita Karana culture has been developing for a long time in Bali, the community has not been able to fully integrate these cultural values in formal practice activities. So that in the future it still requires improvement and better adjustment.
Authors and Affiliations
I Made Aditya Pramartha , I Putu Gde Chandra Artha Aryasa , Putu Kemala Vidyantari,
Keywords
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- EP ID EP747018
- DOI 10.47191/jefms/v7-i10-01
- Views 29
- Downloads 0
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