Optimizing Financial Performance through Enhanced Accountability, Integrity, and Competence: A Moderation Analysis in Local Government Settings

Dorika Naa ()
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Dorika Naa: Hasanuddin University

A chapter in Proceedings of the 8th International Conference on Accounting, Management, and Economics (ICAME 2023), 2024, pp 795-802 from Springer

Abstract: Abstract The significance of accountability and integrity in organizational management has become a primary focus in the context of business and finance. These two concepts not only reflect the core values of good governance principles but also have a significant impact on the financial performance of an organization. In the face of the complex dynamics of the business environment, the management of accountability and integrity has become increasingly vital as the foundation for achieving sustainable financial performance. This research aims to understand the moderating role of competence in the relationship between the management of accountability and integrity with the financial performance of an organization. Competence, encompassing the skills, knowledge, and abilities of human resources, is considered a key factor in shaping the implementation of accountability and integrity practices. The research findings indicate that accountability and integrity positively influence the financial performance of the local government. Furthermore, the competence variable moderates the relationship between accountability and integrity with financial performance, demonstrating that the level of competence strengthens the positive impact of integrity on the financial performance of the local government. This study provides new insights into the complexity of the relationship between accountability, integrity, competence, and financial performance. The implications suggest that the improvement of accountability and integrity should be accompanied by an enhancement in the competence of financial personnel to achieve optimal financial performance. These findings contribute significantly to the development of better financial governance and the attainment of regional development goals.

Keywords: Accountability; Integrity; Financial Performance; Competence; Agency Theory; Local Financial Governance (search for similar items in EconPapers)
Date: 2024
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DOI: 10.2991/978-94-6463-400-6_59

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