Online Accessibility of Local Public Enterprise Financial Statements in Indonesia: Can it be Predicted by Institutional Traits of Parent Local Governments?

ABSTRACT This study aims to fill the research gap within the principal‐agent framework by investigating the effect of local government (LG) institutional characteristics on the online accessibility of local public enterprises' (LPEs) financial statements. It employs ordinal regression analysis to understand how predictors from parent LG institutional characteristics affect the online accessibility of LPE financial statements. We find that certain LG institutional characteristics, such as inter‐governmental ownership and local e‐government capacity, have a statistically significant impact on the online accessibility of LPE financial statements. Moreover, an LPE, as a hybrid organization, entails both public and private characteristics, which in this study are represented by the population density and Gross Regional Domestic Product (GRDP) per capita for public traits and LPE orientation for private attributes. LPE orientation is the only variable that is proven to be significant in controlling the online accessibility of LPE financial statements.