¹Syofyan,²Amrani,³Julienda br Harahap, ⁴Bagas Mahesta

^1,2,3,4Universitas Islam Sumatera Utara

This study is related to the concept of public institution on principal agent relationship, namely the relationship between the Village Head and the Village Secretary in local government named Dolok Masihul. The number of villages studied were 44 respondents. Analysis statistical investigates relationship of research variable and using multiple regressions model. After analysing was known that formal contract had a significant positive effect on village funds allocation with value of 0.355. it means both head villager and secretaries had the competence and authority to carry it out, as Pascal (1997), Meinard (1997), Sarwoko (2010: 28) and Syofyan (2019). Hypothesis is accepted. Transaction costs have a negative effect and the hypothesis is rejected. Transaction costs refer to the governance structure as (Klein, 1999: 464-466), (Williamson, 1985). This result is different from the research by Syofyan (2019). Agency costs have coefficient value 0.072. It means agency cost significant to village funds. The hypothesis is accepted. Agency costs in this study are coaching and supervision that are positively related to the total allocation of village funds. This result is in line with Syofyan (2019).

Furthermore, the principal agent conflict is significantly positively related to the allocation of village funds with a coefficient of 0.26. The hypothesis is rejected and this result differs with Syofyan (2019) who found a negative relationship. The principal agent relationship variable is accepted and this result is in line with Syofyan (2019). The variable of principal-agent relationship has significant positif effect to allocation of village funds with coefficient is 0.144. Hypothesis is accepted. This is in line with Syofyan (2019) who found that this positive relationship occurred because each party carried out its duties according to the applicable provisions.

In the theory of public institutions, the principal agent relationship such as the Village Head and the Village Secretary needs to consider various aspects that support the success of the institutional relationship. Therefore, institutional research like this can be used as an initial basis in regulating development policies, especially village development.

Public Institution, Principal Agent Conflicts, Principal Agent Relationships, Village Funds Allocation

1) Rahmawati, H.I, Ayidiati, C, Surifah.,(2015), Analisis Kesiapan Desa Dalam Implementasi Penerapan UU. No. 6 Tahun 2014 Tentang Desa. The 2nd University Research Coloquium

2) Abidin, M. Z. (2015). Tinjauan atas pelaksanaan keuangan desa dalam mendukung kebijakan dana desa. Jurnal Ekonomi & Kebijakan Publik, 6(1), 61–76.

3) Arifiyanto, D. F., & Kurrohman, T. (2014a). Accountability for managing village fund allocations in Jember Regency. Journal of Accounting and Financial Research, 2(3), 473–485. https://doi.org/10.17509/jrak.v2i3.6598

4) Arifiyanto, D. F., & Kurrohman, T. (2014b). Akuntabilitas pengelolaan alokasi dana desa di Kabupaten Jember. Jurnal Riset Akuntansi Dan Keuangan, 2(3), 473–485.

5) Arsyad, L. (2014). Institusi, biaya transaksi, dan kinerja ekonomi: sebuah tinjauan teoretis. Fakultas Ekonomi Dan Bisnis, Universitas Gadjah Mada, Yogyakarta.

6) Arumsari, Y. K., Djumahir, & Aisjah, S. (2014). Pengaruh kepemilikan manajerial, kebijakan utang, kebijakan dividen terhadap kinerja keuangan. Jurnal Wawasan Manajemen, 2(2), 171–187.

7) Asmara, J. A. (2010). Analisis perubahan alokasi belanja dalam anggaran pendapatan dan belanja daerah (APBD) Provinsi Nanggroe Aceh Darussalam. Jurnal Telaah Dan Riset Akuntansi, 3(2), 155–172.

8) [8] Astuty, E., & Fanida, E. H. (2013). Akuntabilitas pemerintah desa dalam pengelolaan anggaran pendapatan dan belanja desa (APBDES) (Studi pada alokasi dana desa tahun anggaran 2011 di Desa Sareng Kecamatan Geger Kabupaten Madiun). Jurnal. Universitas Negeri Surabaya.

9) Attila, G. (2012). Agency Problems in Public Sector. Annals of the University of Oradea, 21(1), 708–712.

10) Claude, M. (2011). The Contribution of Douglass North to New Institutional Economics The future of new institutional economics: from early intuitions to a new paradigm? Journal of Institutional Economics, 10(4), 541–565.

11) Damayanti, W. (2018). Transparansi dan akuntabilitas pemerintah desa dalam pengelolaan dana desa (studi kasus: Desa Tegiri dan Desa Sumberagung Kecamatan Batuwarno, Kabupaten Wonogiri). Program Studi Akuntansi, Fakultas Ekonomi dan Bisnis, Universitas Muhammadiyah Surakarta.

12) De la Rosa, L. E. (2011). Over confidence and moral hazard. Games and Economic Behavior, 77(2), 429–451.

13) de Oliveira, C. B., & Filho, J. R. F. (2017). Agency problems in the public sector: The role of mediators between central administration of city hall and executive bodies. Revista de Administracao Publica, 51(4), 596–615. https://doi.org/10.1590/0034-7612171397

14) Dewi, R. A., Ramadhanti, W., & Wiratno, A. (2016). Faktor-faktor yang berpengaruh terhadap Kinerja Keuangan Pemerintah Desa Pasca penerapan Undang-Undang Nomor 6 tahun 2014. Jurnal Akuntansi Aktual, 3(4), 311–327.

15) Dharmawan, I. M. Y. (2011). Pengaruh kompensasi dan lingkungan kerja non fisik terhadap disiplin dan kinerja karyawan Hotel Nikki Denpasar. Program Pascasarjana Universitas Udayana Denpasar.

16) Dow, S. C. (2010). Moral hazard and the banking crisis. In FMM Conference. Berlin.

17) Darmawan. 2013. Metode Penelitian Kuantitatif. Bandung: Remaja Rosdakarya.

18) Eisenhardt, K. M. (2018). Agency theory: an assessment and review, 14(1), 57–74.

19) Handoko, J. (2014). Pengaruh struktur modal dan mekanisme corporate governance terhadap agency cost perusahaan LQ45 di BEI tahun 2013. UKWMS.

20) Harahap, N. (2018). Analisis pengaruh alokasi dana desa, indeks pembangunan manusia dan tenaga kerja terhadap pertumbuhan ekonomi 10 kabupaten di Sumatera Utara. Universitas Sumatera Utara.

21) Harianto, D., & Subagio, H. (2013). Analisa pengaruh kualitas layanan, brand image, dan atmosfer terhadap kepuasan konsumen sebagai variabel intevening konsumen kedai Deja-Vu Surabaya. Jurnal Manajemen Pemasaran, 1(1), 1–8.

22) Hotimah, H. (2017). Transparansi dan akuntabilitas pemerintah desa dalam pengelolaan anggaran pendapatan dan belanja desa (APBdes). Journal of Undergraduate Thesis.

23) Jamaluddin, Y., Sumaryana, A., Rusli, B., & Buchari, R. D. (2018). Analisis dampak pengelolaan dan penggunaan dana desa terhadap pembangunan daerah. JPPUMA: Jurnal Ilmu Pemerintahan Dan Sosial Politik, 6(1), 14–24.

24) Jaya, W. K. (2012). Mengenal lebih dekat teori ekonomi kelembagaan baru (New Institutuional Economic). Majalah EBNEWS, 12.

25) Kartiko, K. W., & Novasari, L. (2019). Peran aparat desa dalam perencanaan dan pemanfaatan dana desa untuk peningkatan kesejahteraan. Majalah Ilmiah Solusi, 17(2).

26) Kherallah, M, & Kirstein, J. F. (2014). New institutional economists Are the blue coolar guys with a hearty appetite for reality. Indian Agricultural Research I.

27) Sugiyono. 2011. Metode Penelitian Kuantitatif, Kualitatif dan R&D. Bandung: Alfabeta

VOLUME 04 ISSUE 12 December 2021