THE EFFECT OF ACCRUAL LEVELS, DISCRETIONARY ACCRUALS, POLITICIAN FACTOR AND AGE OF LOCAL GOVERNMENT ON TOWARDS THE BUDGET FINANCING SURPLUS IN LOCAL GOVERNMENT REGENCY/CITY OF SOUTH SUMATERA PROVINCE

Earnings management research to determine what motivates managers to disclose earnings around zero and use it as an instrument to influence user decisions. Still limited available research in the subject of public sector. This research aims to analyze the effect of the accrual levels, discretionary accruals, politicians factor, the age of local government against the remaining budget financing surplus. The population in this research is financial statements of local governments, both cities, regencies, and province in South Sumatra Province from 2015 to 2019 consisting of 18 local governments who were taken using purposive sampling method. The data were analysed using multiple linear regression analysis using software SPSS version 25. By using 5 calculation models of earnings management, such as de angelo, healy, hribar, jones and modified jones. The results of the analysis show that the discretionary accrual variables and age of the local government have an effect on budget financing surplus, and the political motive variable has no effect on budget financing surplus. Keywords: Accrual Levels, Discretionary Accrual, Politicians Factor, Age of Local Government, Budget Financing Surplus