Abstract:
The capital expenditures are part of direct expenditure in the regional budget. The
other elements of capital expenditures are: personnel expenditure, and spending on goods
and services. Planning and realization for capital expenditure in the regional budget for
each Government Regional Work Units is a part of policy regional financial
management in fiscal decentralization policy which need be increased to achieve value
significantly over time. Increasing in planning and realization of capital expenditures is
directly related to the amount of capital expenditure element that strengthens physical
infrastructure which would strengthen economic growth for social welfare, regional
competitiveness for facilitation and liberalization a single market and production base
in AEC era. This study examines the role of agency theory and institutional theory in
relation with planning and realization of capital expenditures of 82 (Eighty Two)
Government Work Units of 3 (Three) regional government, namely Banjarmasin City,
Banjar District, and Tanah Laut District in South Kalimantan Province. This study
contributes to the accounting literature to assess role of conceptual framework with
agency theory and institutional theory. The result of study showed : there are differences
in the implementation of capital expenditure to meet AEC pillars and social welfare
purposes by increasing capital expenditure through the role of the agency theory, and
institutional theory. Relationship of agency theory and institutional theory with social
welfare and AEC with the amount of C Contingency coefficient 0,313 and Cramer
Coefficient of Association 0.191 indicates there are "Moderate correlation: substantial
relationship" and "Small correlation; Lower relationship association.
