CAPITAL EXPENDITURE ANALYSIS IN DISTRICT AND CITY PROVINCE OF CENTRAL JAVA

The demands of public accountability and transparency make local governments have to be able to optimize capital expenditures to improve public services and increase economic productivity, so that equitable development can be successful both at the center and the regions. The motivation of the research is to analyze capital expenditure in terms of the level of economic growth, regional revenue allocation, general allocation funds, special allocation funds, value for money (economical, efficient, effective). The type of causality and descriptive approach involves 29 districts and 6 cities in Central Java province for the 2014-2019 period using purposive sampling so that the number of observation data (n) = 210. The analysis technique uses panel data regression. The results of the study found that the level of economic growth had a negative and significant impact on capital expenditures for the allocation of local revenue, general allocation funds, special allocation funds had a positive and significant impact on capital expenditures. Economical has no impact on capital expenditures. Efficient and has a negative impact on capital expenditures. Ratio analysis shows economic performance; efficient ratio indicates efficient performance and effective ratio indicates ineffective performance.

research contribution is to use panel data regression testing which has never been done before in either national or international journals. In addition, it combines value for money with a causal and descriptive approach that has never been done by previous researchers. The results of previous studies (Yovita and Utomo, 2011); (Salim, 2019) found that the level of economic growth had an impact on capital expenditure while (Puspita, 2019); (Syukri and Hinaya, 2019) found that on the contrary the level of economic growth had no impact on capital expenditures. According to (Salim, 2019); (Syukri and Hinaya, 2019) the allocation of local revenue has an impact on capital expenditure, in contrast to (Ndede et al., 2016); (Eksandy et al., 2015) who found that the allocation of local revenue had no impact on capital expenditures. According to (Hairiyah et al, 2018); (Eksandy et al., 2015) DAU has an impact on capital expenditure, in contrast to (Syukri and Hinaya, 2019); (Samudra and Sugeng, 2020) who found that the DAU had no impact on capital expenditures. According to (Ocean and Sugeng, 2020); (Hairiyah et al, 2018) DAK has an impact on capital expenditure, unlike (Syukri and Hinaya, 2019); (Eksandy et al., 2015) who say otherwise. According to (Perdana et al, 2020); (Indrayani & Khairunnisa, 2018) economic impact on capital expenditure, in contrast to (Enre, 2020); (Indriaswari, 2017) which states otherwise. According to (Ardhini and Handayani, 2011) efficiency has an impact on capital expenditure, in contrast to (Tamawiwy et al., 2016); (Indiyanti and Rahyuda, 2018) who found the opposite. According to (Purnawati, 2017); (Ardhini and Handayani, 2011) effectively impact on capital expenditure, in contrast to ; (Tamawiwy et al., 2016) which states otherwise. Based on the research gap, it became the basis for researchers to conduct this research.

LITERATURE REVIEW Stewarship Theory (Stewarship Theory)
This theory reflects the delegation of authority and responsibility of the party providing the mandate (principal) to the recipient (steward) to carry out activities in accordance with the principal's recommendations in order to achieve organizational goals on the basis of trust (Khasanah & Rahardjo, 2014).

Regional Financial Accounting
This accounting records events from economic transactions in an entity within the local government environment (Erlina et al., 2018). In local governments, there is a APBD which includes a plan for spending and income which is presented in the working year. APBD has a role as authorization, planning, supervision, allocation, distribution and stabilization (Minister of Home Affairs, 2006). Regional financial performance is reviewed from financial reports which will later be used as decision making (Mahmudi, 2019). Indicators of financial performance include: input, process, output, outcome as well as benefits and impact.

Capital Expenditure (Capital Expenditure)
Capital expenditure is part of the expenditure used to acquire fixed assets and other assets that can provide benefits for more than 1 accounting period. The types are land, equipment, machinery, buildings, buildings, roads, irrigation, roads, other fixed assets and on-going construction (Ministry of Finance DJ Fiscal Balance, 2020). Jurnal Akuntansi : Kajian Ilmiah Akuntansi 241 | A k u n t a n s i Economic growth is a series of processes starting from sustainable economic conditions leading to better conditions within a certain period of time. Economic growth provides a description of the factors that correlate with one another so that growth appears (Ministry of Finance Learning Center, 2018). The level of economic growth is represented by the Gross Regional Domestic Product (GRDP) which is used in assessing the total goods/services in a region. According to (Paul A. Samuelson, 2011) there are four things that are used as a source of economic growth, such as : human resources, natural resources, capital and technology.

Allocation of Regional Original Revenue (PAD)
Regional original income is revenue taken/collected in accordance with regional regulations and laws obtained from certain regions. PAD is intended so that regional governments can finance regional autonomy with all regional potentials for the realization of decentralization. The types of PAD are regional taxes, regional levies, the results of the management of separated regional assets, other legitimate regional original income (Ministry of Finance DJ Balancing, 2021).

General Allocation Fund (DAU)
DAU is a transfer fund originating from APBN revenues for regional equity in terms of finance to support decentralization. DAU is also regulated in Law No. 23 of 2014. DAU plays an important role in achieving public service standards. Types of DAU include: provincial DAU, district/city DAU. The function of the DAU is to overcome the vertical and horizontal fiscal imbalances of decentralization (Ministry of Finance DJ Fiscal Balance, 2021b).

Special Allocation Fund (DAK)
DAK is funding originating from APBN revenues distributed to regions to finance special activities based on national urgency (Ministry of Finance DJ Fiscal Balance, 2021a). The DAK distribution mechanism consists of several criteria, such as : general, specific and technical criteria (Wikipedia, 2021).

Value For Money (VFM)
VFM is a three-element concept (economy, efficiency and effectiveness) used to assess the management of a public sector organization. VFM is a form of appreciation for money, which means that every rupiah must be properly appreciated and used properly (Mardiasmo, 2018b:5). According to (Putro & Wirawati, 2015) VFM is a forum for achieving good governance for local governments that is transparent, economical, efficient, effective and accountable, so that VFM is needed as a support for regional fund management. Economical is an effort to reduce costs by maintaining quality. Efficiency is the correlation of output and input. Effectiveness is how much the goal is achieved with the output obtained (Mardiasmo, 2018b:5).

RESEARCH METHODS
This research is a quantitative study with a combination of causality and descriptive approaches, using secondary data. The population is all districts and cities of Central Java province for the 2014-2019 period. Using purposive sampling, 35 samples were obtained with a total of 210 observational data. The data collection technique was obtained from the annual report of LHP LKPD (Report on the Results of Examination of Regional Government Financial Statements) in Central Java Province for the 2014-2019 period which we obtained via https://e-ppid.bpk.go.id/ in which there is a Realization Report of the Regional Revenue and Expenditure Budget consisting of Capital Expenditures, Regional Original Revenues, General Allocation Funds, Special Allocation Funds and data related to Value For Money. In addition, other secondary data is the GRDP (Gross Regional Domestic Product) of Central Java Province Districts and Cities for the 2014-2019 period which we downloaded through the Central Statistics Agency (BPS) on the https://www.bps.go.id/publication page. html. The data analysis technique starts from descriptive statistics, using panel data regression through the selection of regression model estimates ( This deviation means that the distance between the data for each variable is small (

Random Effect Model
Based on tables 3 and 4, it is concluded that the model follows the REM (Random Effect Model). This REM will be used in the panel data regression model.

Classic Assumption Test Results
Normality Test, Multicollinearity Test  Table 6 shows that the results of the normality test are normal (0.372 > 0.05) meaning that the residual data has a normal distribution, while the results of the multicollinearity test found that there was no multicollinearity (all variables had centered VIF < 10). Jurnal Akuntansi : Kajian Ilmiah Akuntansi 246 | A k u n t a n s i  Table 7 shows the results of the autocorrelation test du < DW < 4 -du, namely: 1.83057 > 2.0152 < 2.1694), this means that there is no autocorrelation, so the regression model is feasible to use. On the results of the heteroscedasticity test the value of prob. > 0.05 this means that there is no heteroscedasticity in all independent variables.  Table 8 shows the Adjusted R-Squared 0.7497, this means that 74.97% of the independent variables can predict capital expenditures. Meanwhile, the remaining 25.03% is explained by other factors that the researcher did not observe. The results of the F test of 0.00 <0.05 means that there is a joint influence between the independent variable and the dependent variable, so that the research model is said to be fit (feasible), this also answers the 1st hypothesis. The results of the t-test explain that the level of economic growth, efficiency and effectiveness has a negative and significant impact on capital expenditures, while the allocation of local revenue, general allocation funds, special allocation funds has a positive and significant impact on capital expenditures. Economical has no impact on capital expenditures. Https://Www.Bps.Go.Id/. https://www.bps.go.id/subject/52/produk-domestik-regional-