Analysis of Financial Performance in Public Sector

The study aims to examine the effect of Regional Original Income (PAD) on the financial performance of the Lamongan Regency (local government in East Java Province, Indonesia). The research was conducted in Lamongan using panel data 2010-2017 (eight years) to promote empirical facts. This study uses the Agency Theory and Fiscal Federalism Theory which are designed in the form of quantitative research approaches. The analysis technique in this study uses Structural Equation Modeling (SEM) with a variance based or component-based approach with Partial Least Square (PLS). The results of this study are the Regional Original Revenue (PAD) effect on three components of regional financial performance as measured by…