The Effect of Regional Financial Characteristics and Transparency on Corruption Potential: Study on Regency / City Governments in Indonesia in 2020-2022

This research aims to provide more in-depth knowledge regarding the influence of regional financial characteristics and transparency on the potential for corruption in regional government. This research uses district/city governments in Indonesia in 2020-2022 as research objects, using 250 district/city governments that meet the predetermined sample criteria and an observation period of 3 years so that the observation data amounts to 750. The research data is in the form of secondary data taken from the Softcopy Attachment of the BPK Semester I Examination Results Summary, Regional Government Financial Reports, and the official website of each district/city government. The analysis method uses SPSS version 25 with multiple linear regression methods. The results of this research conclude that employee expenditure and regional financial independence have a negative effect on the potential for corruption in district/city governments. Capital expenditure has a positive effect on the potential for corruption in district/city governments. Meanwhile, transparency has no effect on the potential for corruption in district/city governments.