Analysis of the Factors that Affect the Capital Expenditure of the Central Java Provincial Government

Abstract

Research on capital expenditure concludes the result of the pros and cons, therefore
research on capital expenditure will always attract attention even though reasearchers
use varied variables. The purpose of this study is to analyze and examine the effect of
Local Own-Source Revenue, General Allocation Fund, Revenue Sharing Fund, and Gross
Regional Domestic Product on Capital Expenditures. The research method used is a
quantitative method. The population in this study is The Regency/City of Central Java
Province for the 2017-2019 period. This study uses the saturation sampling method so
total sample is 35 consisting of 29 district and 6 cities. The data of this study were tested
using multiple linear regression models. The results of this study indicate that Local
Own-Source Revenue has a significance value of 0,000 < 0,05 affecting Capital
Expenditures, which means H
1
is acceptable. The General Allocation Fund has a
significance value of 0,000 < 0,05 affecting Capital Expenditures, which means H
2
is
acceptable. Revenue Sharing Fund has a significance value of 0,019 < 0,05 affecting
Capital Expenditures, which means H
3
is acceptable. Gross Regional Domestic Product
has a significance value of 0,677 > 0,05 does not affect Capital Expenditure, which means
H
4
is rejected.