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This study examines the effects of fiscal decentralization, internal audit capability, bureaucratic reform, and performance accountability on corruption that occur in local governments. Corruption in this research was measured by the number of corruption cases found in local governments based on the court verdict. This quantitative research was conducted using multiple regression analysis methods.The research sample was taken using a purposive sampling method from the population of all districts/cities in Indonesia from 2016 to 2019.Hence theresearch obtained a sample of 225 districts/cities (900 observations). The examination results reveal that fiscal decentralization affects the increase of corruption in local governments, while internal audit capability and bureaucratic reform significantly decrease corruption cases. On the other hand, performance accountability has no significant effect on increasing or decreasing corruption in local governments. Based on these results, the central government might consider providing additional incentives funds for local governments with high internal audit capability and bureaucratic reform. It was intended to encourage local governments to improve their internal audit capabilities and bureaucratic reforms, which are proven to help reduce the level of corruption in local governments.
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