The aims of this study were to investigate the effects of local government characteristics in Indonesia (size, local revenues, intergovernmental transfer, total expenditures, liabilities,
population), and BPK audit findings on the performance of local governments. The sample was the local governments in Indonesia which presented the complete data. The secondary
data were collected using documentary method, and the hypotheses testing applied multiple regression analysis. The results showed that the size, intergovernmental transfer, total
expenditures, liabilities, and BPK audit findings were not significant toward the performance of local governments. While, local revenues and population were significant toward the
performance of local governments.
Key words: local government characteristics, BPK audit findings, local goverment performance