Evaluation of Regional Financial Performance and the Impact of Causal Variables: Research on Jember Regency for the 2018-2022 Period.

Abstract

This study analyzes the regional financial performance of Jember Regency from 2018 to 2022 with a focus on economic growth, poverty rate, and unemployment. Using APBD and macroeconomic data, analysis through multiple linear regression shows that economic growth has a positive and significant effect on several regional financial performance ratios, while poverty and unemployment rates have a significant negative impact on several ratios. Suggestions for the local government of Jember Regency include increasing local financial independence with local revenue, improving the efficiency and effectiveness of financial management, and allocating the budget according to development priorities. This study aims to analyze the effect of economic growth, poverty rate, and unemployment rate on the regional financial performance of Jember Regency in 2018-2022. The independence ratio, effectiveness ratio, efficiency ratio, activity ratio, and growth ratio are the five regional financial performance ratios used in this study. The data used is secondary data in the form of regional financial reports and regional macroeconomic data. The analysis method used is multiple linear regression analysis with F test, t test, and determination coefficient test. The results showed that economic growth, poverty rate, and unemployment rate simultaneously and partially affect regional financial performance. The direction and level of influence vary depending on the regional financial performance ratio used. In general, economic growth has a positive effect, while the poverty rate and unemployment rate have a negative effect on regional financial performance. This shows that regional macroeconomic conditions are very influential on regional health and welfare. The results also showed an interaction between economic growth, poverty rate, and unemployment rate in influencing regional financial performance. This means that these factors cannot be separated in analyzing regional financial performance, but must be considered together. These factors influence each other and are influenced by regional financial performance, thus forming a dynamic and complex system.