STUDYING THE EFFECT OF FINANCIAL MANAGEMENT PERFORMANCE OF STATE COLLEGES ON PARTICIPATION AND BUDGET SATISFACTION INDICATORS: A CASE OF UNIVERSITY OF SRIWIJAYA

Abstract

Financial performance in the education sector within the scope of higher education is a description of the extent of success or failure of an organization in carrying out its main duties and functions in order to realize its goals, objectives, mission and vision. Performance measurement is a performance assessment, both financial and non-financial performance measurement, which is a very important component in the management control system. This research made State University of Sriwijaya in South Sumatra Province the object of research where by using observation methods and distributing questionnaires, as many as 195 people had the status of employees involved in financial management (Head of Department, Head of Study Program, Laboratory, Deanery and Financial Administration Faculty). The analytical tool for answering the relationship between participation and budget adequacy on managerial performance uses Structural Equation Modeling (SEM) with Smart-PLS. From the results obtained, there are still errors in filling out the questionnaire with the mean value being greater than the std. deviation and the frequency limit for each answer being identified; there are still criteria for quite agreeing or not being planned and still need attention.

Keywords

• managerial performance
• participation
• budget adequacy
• resource based view
• performance based budgeting
• state universities