Determinants of Local Government Financial Performance with Capital Expenditure as a Moderating Variable

This study was conducted with the aim of examining the role of Capital Expenditure in moderating Local Government Size, Wealth, Intergovernmental Revenue, and Leverage on Local Government Financial Performance in Regency / City in East Java Province in 2020 - 2022. The research was conducted using quantitative methods in the form of Balance Sheet and LRA reports. The results showed that Regional Wealth and Intergovernmental Revenue had a significant positive effect on Local Government Financial Performance. While Local Government Size and Leverage have no significant effect on Local Government Financial Performance. Capital expenditure is only able to strengthen the relationship between Regional Wealth and Intergovernmental Revenue on Local Government Financial Performance. Conversely, the results show that capital expenditure weakens the relationship between Local Government Size and Leverage on Local Government Financial Performance.