This study aims to examine the effect of capital expenditure, size of local
government, intergovernmental revenue, local revenues and leverage toward
financial performance. The dependent variable applied in the research was financial
performance as measured by the efficiency ratio, while the independent variable
were capital expenditure, size of local government, intergovernmental revenue, local
revenues and leverage. Population in this study was a local government of district /
city in West Java province in 2013-2015. The sample in the study was selected by
purposive sampling method, and the data obtained were 80 sample observation
samples. The analysis technique used in this research was multiple linear regression
analysis. Result of the analysis proved that the capital expenditure variable does not
negatively affected on the financial performance of local governments in West Java
province, leverage variable does not positively affect on the financial performance of
local governments in West Java province, size of local government and local
revenues variables negatively significantly affected on the financial performance of
local governments in West Java province, while intergovernmental revenue variable
significantly positively effect on the financial performance of local governments in
West Java province.