The Effect of a Digital-Based Public Information Disclosure System on the Quality of Regional Financial Reporting in the Medan City Government

Abstract

The digital transformation of government governance fosters the hope that public information can be presented more rapidly and transparently. However, the availability of various digital channels at the local level does not automatically guarantee high-quality financial reporting. Addressing this gap, this study aims to measure the extent to which digital-based public information transparency influences the quality of local financial reporting within the Medan City Government. Transparency is assessed across three dimensions: ease of access to digital platforms, completeness of financial data, and the speed of information updates. A quantitative method was employed, utilizing primary data collected via a 1–5 Likert scale questionnaire from 35 financial reporting staff members across various Medan City regional government agencies (OPD); the data were subsequently analyzed using multiple linear regression in SPSS 26. Test results indicate that all instrument items were valid and reliable, satisfying classical assumption requirements. All three transparency dimensions were found to have a positive and significant impact on financial reporting quality—whether tested individually or collectively—with the model explaining approximately 45 percent of the data variance; among the three, the speed of information updates emerged as the most decisive factor. Consequently, the study concludes that strengthening digital information transparency systems—particularly regarding timeliness—is a strategic measure for local governments to enhance the quality of their financial reporting.