The Role Of Good Governance In Supporting Local Government Financial Performance: A Literature Study

Abstract

This research aims to analyze the role of good governance in supporting local government financial performance through a literature study approach. The research method uses a qualitative method with data collection techniques through literature study, involving the review of various literature, journals, and scientific publications related to government governance and local financial performance.

The research results show that good governance has a significant contribution in improving the quality of local financial management. Good governance principles such as transparency, accountability, participation, and effectiveness have been proven to drive improvements in local government financial performance. Various case studies from several regions, such as Makassar City and Depok City, indicate that the implementation of good governance can improve the quality of financial reports by up to 92.9%.

The study concludes that the implementation of good governance is a key strategy in optimizing local financial management. The main factors influencing this success include information transparency, fund management accountability, management efficiency, internal and external oversight, and public participation in decision-making processes. The research recommendation is the need for sustained commitment from local governments in applying good governance principles.