Economic laboratory transition research podgorica the determinants of the end-of-year spending behavior of local governments’ financial managers: A lesson learn from Indonesia

Abstract

This study seeks to investigate the determinants of the end-of-year spending behavior of local governments’ financial officers based on the social cognitive theory (personal and environmental factors) and moral intensity. Our sample is 290 senior officers who administer the financial and operational expenditures of regencies/ cities in Indonesia. Using the structural equation modeling (SEM), this paper demonstrates that multidimensional factors, including environmental (control environment), personal (risk consideration), and moral intensity, affect the end-of-year spending behavior of local govern-ments’ financial officers. Other findings show that risk consideration mediates the effect of moral intensity on the end-of-year spending behavior of local governments’ financial officers.