The Dynamics of Financial Reporting Quality in Village Governance: Insights from Bengkalis Sub-District on Accessibility, Community Participation, and Accountability

Abstract

The study examines variables influencing the quality of village financial reports, namely the quality of human resources, community involvement, accountability, and accessibility of financial information. Specifically, within the context of village governance in the Bengkalis Sub-district, the study seeks to determine how these factors affect the caliber of village financial reports. By exploring the moderating role of human resource quality, the study aims to assess the influence of accessibility, community engagement, and accountability on the quality of village financial reports. The study employed Partial Least Squares Structural Equation Modeling (PLS-SEM) as the research method. Data were collected through surveys administered by the Bengkalis Subdistrict Village Council. The findings revealed that community involvement and information accessibility positively influenced the quality of village financial reports, with the quality of human resources playing a crucial mediating role. The theoretical contributions of these studies center on exploring the intricate dynamics among various factors that influence the quality of financial statements in village governance. On the other hand, methodological contributions arise from the application of advanced statistical techniques to analyze these relationships. Additionally, the comprehensive sampling approach used to collect information adds to the methodological contributions of the studies. These findings emphasize the importance of supporting and encouraging community participation in village financial management, improving the quality of human resources at the village level, and integrating information technology into the preparation and dissemination of village financial reports. This study significantly contributes to advancing the theory and practice of public financial management at the village level.