The Role of Economic Growth in Moderating the Effect of Local Revenue and Transfers on Capital Spending: A Case from Central Java

Authors

  • Nita Amelia Accounting Department, Universitas Widya Dharma, Indonesia
  • Tri Utami Accounting Department, Universitas Widya Dharma, Indonesia
  • Titik Purwanti Accounting Department, Universitas Widya Dharma, Indonesia
  • Cahaya Nugrahani Accounting Department, Universitas Widya Dharma, Indonesia
  • Susyanti Accounting Department, Universitas Widya Dharma, Indonesia
  • Agung Nugroho Jati Accounting Department, Universitas Widya Dharma, Indonesia

DOI:

https://doi.org/10.30595/raar.v5i2.26461

Abstract

This study investigates the effects of regional original revenue, general allocation fund, and special allocation fund on capital spending, with economic growth as a moderating variable in the Province of Central Java. This reserach examines 35 regencies and cities over the period 2020–2023. The analysis methods include descriptive statistics, classical assumption tests (normality, multicollinearity, autocorrelation, and heteroscedasticity), and hypothesis testing using multiple linear regression and moderated regression analysis. The results indicate that regional original revenue has no significant effect on capital spending. The general allocation fund negatively affects capital spending, while the special allocation fund has a positive effect. Furthermore, economic growth does not moderate the relationship between regional original revenue, general allocation fund, and special allocation fund on capital spending.

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Published

2025-10-31

Issue

Vol. 5 No. 2 (2025): Review Of Applied Accounting Research (RAAR)-October

Section

Articles

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Copyright (c) 2025 Nita Amelia, Tri Utami, Titik Purwanti, Cahaya Nugrahani, Susyanti, Agung Nugroho Jati

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Creative Commons License
RAAR: Review of Applied Accounting Research is licensed under a Creative Commons Attribution 4.0 International License.