Muhamad Arief Affandi, Etty Murwaningsari, Sekar Mayangsari,Susi Dwi Mulyani
The objective of this research is to conduct empirical test over the effect of accrual-based accounting system and bureaucratic reformation on government financial performance with financial decision making as mediation variable. Financial decision making is a mediation variable used by the current research to fill research gap regarding the effect of accrual-based accounting system and bureaucratic reformation on government financial performance. Data type is cross section involving 258 respondents as sample. The identity of respondents is provided by the Head of the Office of Demography and Civil Registration. Analysis technique is PLS-SEM supported by WarpPLS 7.0. Several conclusions are obtained. First is that accrualbased accounting system has positive and significant effect on government financial performance. Second is that bureaucratic reformation has positive and significant effect on government financial performance. Third is that accrual-based accounting system has positive and significant effect on financial decision making. Fourth, bureaucratic reformation has positive and significant effect on financial decision making. Fifth, financial decision making has positive and significant effect on government financial performance. Sixth, accrual-based accounting system and bureaucratic reformation has indirect effect on government financial performance through financial decision making. This research successfully confirms that financial decision making plays role of mediation in the effect of accrual-based accounting system and bureaucratic reformation on government financial performance. This position correspond with agency theory, new public management theory and decision usefulness theory.