The effect of good government governance on the financial reports quality: the case of provincial capital governments in Indonesia

This study aimed to determine the relationship and effect of the GGG variable on the quality of the financial
reports in municipal governments in Indonesia by implementing the IIAG (The Ibrahim Index of African
Governance) indicator. The variables of this study consist of the participant, legal culture, transparency,
responsiveness, public interest orientation, fairness, effectiveness and efficiency, accountability, strategic vision,
and human development as independent variables and the quality of financial reports as dependent variables. The
method in this study was quantitative, so it was found that partially, only responsive and accountability variables
significantly affected the quality of the financial reports. Meanwhile, other independent variables such as
participants, legal culture, transparency, public interest orientation, fairness, effectiveness and efficiency,
strategic vision, and human development had no significant effect on the quality of financial reports. However,
simultaneously, all independent variables had a significant effect on the quality of financial reports. The level of
the coefficient of determination obtained was equal to Adj. R2 = 0.299. It means that the quality of local
government financial reports was influenced by the independent variable by 29.9%, while 70.1%was influenced
by other variables not examined in this study.