THE EFFECT OF REGIONAL FINANCIAL PERFORMANCE ON CAPITAL EXPENDITURE AND ECONOMIC GROWTH IN EACH DISTRICT AND CITIES IN BALI PROVINCE

Abstract Regional financial management aims to fulfill the principles of value for money both in terms of income and expenditure economically, effectively and efficiently. The purpose of this paper is to determine the effect of regional financial performance on capital expenditure significantly, to determine the effect of capital expenditure on economic growth significantly, and to determine the indirect effect of regional financial performance on economic growth. This study uses census data which are all districts and cities in the province of Bali. The analysis technique used is SEM (Structural Equation Model) with the help of PLS program. The data used in this study is time series from 2012-2016. The results of the analysis found that the relationship between financial performance on capital expenditure had a significant effect, capital expenditure on economic growth had no significant effect, and the regional financial performance on economic growth had no significant effect. Keywords: Regional Financial Performance, Capital Expenditures, Economic Growth, Significant, Regional Financial Ratios