Pengaruh Kemandirian Daerah dan Level of Capital Outlay Terhadap Financial Distress: Studi Empiris pada Pemerintahan Daerah Kabupaten dan Kota di Sumatera Barat Periode 2019-2023

This research examines the influence of regional financial independence and the level of capital outlay on financial distress in district and city governments in West Sumatra for the 2019-2023 period. Financial distress in local governments is an important issue because it affects their ability to provide public services effectively. With a quantitative approach, this research uses secondary data from the Directorate General of Fiscal Balance, Ministry of Finance. The sample was determined using a purposive sampling technique, and a sample of 95 samples was obtained. The analysis was carried out using multiple linear regression with SPSS version 26 software. The research results showed that regional financial independence had a significant positive effect on financial distress. Meanwhile, the level of capital outlay also has a significant positive effect on financial distress.