Effects of Accountability in Mediating the Quality of Financial Reporting and Village Performance in Madura


  • Hanif Yusuf Seputro Jurusan Akuntansi Universitas Trunojoyo Madura
  • Erfan Muhammad Jurusan Akuntansi Universitas Trunojoyo Madura




financial reporting quality, accountability, village performance


Observing the New Public Management (NPM) theory and agency theory, this study examines the mediating role of accountability in the relationship between financial reporting quality and the performance of public organizations in this case are villages in Madura. The research model and hypotheses were tested by surveys and responses obtained from financial managers and village leaders, in this case the village heads in villages throughout Madura. The results of the study directly that the quality of financial reporting and accountability have a significant effect on village performance. The analysis indirectly results in accountability being able to mediate the quality of financial reporting on village performance in Madura. Suggestions in this study are: 1) Villages maximize village programs according to village goals; 2) Villages must be able to make quality financial reports in order to improve village performance for the better; 3) When financial reports are implemented with a higher quality through optimizing accountability, village performance can be further improved for the better.


Adhikari, P., Mellemvik, F., 2011. The rise and fall of accruals: A case of Nepalese central government. J. Account. Emerg. Econ. 1 (2), 123—143.

Arellano-Gault, D., Lepore, W., 2011. Transparency reforms in the public sector: Beyond the new economics of organization. Organiz. Stud. 32 (8), 1029-1050.

Boston, J., 2016. Basic NPM ideas and their development, The Ashgate research companion to new public management. Routledge, 33—48.

BPK RI. 2020. Ikhtisar Hasil Pemeriksaan Semester (IHPS) 1 Tahun 2020. https://www.bpk.go.id/ihps/2020/I.

Christensen, T., Lægreid, P., 2014. Performance and accountability–A theoretical discussion and an empirical assessment. Publ. Organiz. Rev. 15 (2), 207—225

Cohen, S., Karatzimas, S., 2017. Accounting information quality and decision-usefulness of governmental financial reporting: Moving from cash to modified cash. Meditari Accountancy Res. 25 (1), 95—113.

Glisson, C.A., Martin, P.Y., 1980. Productivity and efficiency in human service organizations as related to structure, size, and age. Acad. Manag. J. 23 (1), 21—37.

Gomes, P., Mendes, S.M., Carvalho, J., 2017. Impact of PMS on organizational performance and moderating effects of context. Int. J. Product. Perform. Manage. 66 (4), 517—538

Guthrie, J., 1998. Application of accrual accounting in the Australian public sector—rhetoric or reality. Financ. Account. Manage. 14 (1), 1—19

Hair, J.F., Hult, G.T.M., Ringle, C., Sarstedt, M., 2017. A primer on partial least squares structural equation modeling (PLS-SEM). Sage Publications, The United States of America.

Han, Y., 2019. The impact of accountability deficit on agency performance: performance-accountability regime. Publ. Manage. Rev.

Hood, C., 1991. A public management for all seasons?. Publ. Admin. 69 (1), 3—19.

Hood, C., 1995. The ‘‘New Public Management” in the 1980s: Variations on a theme. Acc. Organ. Soc. 20 (2—3), 93—109.

IPSASB, 2013. The conceptual framework for general purpose financial reporting by public sector entities. International Federation of Accountants.

Kalimullah, N.A., Alam, K.M.A., Nour, M.A., 2012. New public management: Emergence and principles. Bup J. 1 (1), 1—22.

Kim, P.S., 2009. Enhancing public accountability for developing countries: Major constraints and strategies. Aust. J. Publ. Admin. 68 (s1), S89—S100.

Kobayashi, M., Yamamoto, K., Ishikawa, K., 2016. The usefulness of accrual information in Non-mandatory Environments: The case of Japanese local government. Aust. Account. Rev. 26 (2), 153—161.

Krambia-Kapardis, M., Clark, C., Zopiatis, A., 2016. Satisfaction gap in public sector financial reporting. J. Account. Emerg. Econ. 6 (3), 232—253.

Kroll, A., 2015. Explaining the use of performance information by public managers: A planned-behavior approach. Am. Rev. Publ. Admin. 45 (2), 201—215

Lassou, P.J.C., 2017. State of government accounting in Ghana and Benin: A ‘‘tentative” account. J. Account. Emerg. Econ. 7 (4), 486—506.

Mack, J., Ryan, C., 2006. Reflections on the theoretical underpinnings of the general-purpose financial reports of Australian government departments. Account., Audit. Accountability J. 19 (4), 592—612.

Martin, J., Spano, A., 2015. From performance management to strategic local government leadership: lessons from different cultural settings. Publ. Money Manage. 35 (4), 303—310

Mbelwa, L., Adhikari, P., Shahadat, K., 2019. Investigation of the institutional and decision-usefulness factors in the implementation of accrual accounting reforms in the public sector of Tanzania. J. Account. Emerg. Econ. 9 (3), 335—365.

Mizrahi, S., Minchuk, Y., 2019. Accountability and performance management: Citizens’ willingness to monitor public officials. Publ. Manage. Rev. 21 (3), 334—353

Nakmahachalasint, O., Narktabtee, K., 2019. Implementation of accrual accounting in Thailand’s central government. Publ. Money Manage. 39 (2), 139—147.

Nirwana, H., 2018. Determinant factor of the quality of financial statements and performance of the government by adding contextual factors: Personal factor, system/administrative factor. Asian J. Account. Res. 3 (1), 28—40.

Patton, J.M., 1992. Accountability and governmental financial reporting. Financ. Account. Manage. 8 (3), 165—180.

Rajib, S.U., Adhikari, P., Hoque, M., Akter, M., 2019. Institutionalisation of the cash basis International Public Sector Accounting Standard in the central government of Bangladesh: An example of delay and resistance. J. Account. Emerg. Econ. 9 (1), 28-50.

Reck, J.L., 2001. The usefulness of financial and nonfinancial performance information in resource allocation decisions. J. Account. Public Policy 20 (1), 45—71.

Steccolini, I., 2004. Is the annual report an accountability medium? An empirical investigation into Italian local governments. Financ. Account. Manage. 20 (3), 327—350.

Tran, T.B., 2014. The cycle of transparency, accountability, corruption, and administrative performance: evidence from Vietnam. J. Econ. Develop. 16 (3), 32—48

Thoms, P., Dose, J.J., Scott, K.S., 2002. Relationships between accountability, job satisfaction, and trust. Hum. Resour. Develop. Quart. 13 (3), 307—323.

Veladar, B., BaÅ¡ic ´, M., Kapic ´, J., 2014. Performance measurement in public sector of transition countries. Busin. Syst. Res. 5 (2), 72—83

Verbeeten, F.H., Speklé, R.F., 2015. Management control, results-oriented culture and public sector performance: Empirical evidence on new public management. Organiz. Stud. 36 (7), 953—978



How to Cite

Hanif Yusuf Seputro and Erfan Muhammad (2022) “Effects of Accountability in Mediating the Quality of Financial Reporting and Village Performance in Madura”, Jurnal Penelitian Teori & Terapan Akuntansi (PETA). Blitar, Indonesia, 7(2), pp. 285–309. doi: 10.51289/peta.v7i2.590.