THE EFFECT OF GOVERNMENTAL ACCOUNTING REPORTS ON INCUMBENTS SUCCESS: A STUDY OF INDONESIA LOCAL ELECTION

Abstract

ABSTRACT
This research wants to predict the incumbents ’success in an electoral situation using the
governmental accounting disclosure. The disclosure is covering financial and non-financial
performance. The research sample is 1566 local elections in Indonesia, between 2005 and 2018.
The research result shows that internal control weakness and performance score are significant
for the incumbents’ success. Meanwhile, the audit opinion, non-compliance finding, and
accountability score are insignificant. The result shows that less of internal control weakness and
greater performance can predict the incumbents’ success. However, this research has limitations
that assuming the voters are rational.