THE EFFECT OF STRATEGIC PLANNING AND BUDGET PREPARATION TO FINANCIAL PERFORMANCE: A STUDY ON THREE SDA HIGHER EDUCATIONAL INSTITUTIONS IN INDONESIA

Abstrak

The concept of financial performance is a series of financial activities in a given period of time that reported in the financial statements it also reflects the company's operational performance. The purpose of this study to determine whether the strategic planning and budget preparation effect on financial performance on the three SDA higher educational institutions in Indonesia. This research uses the questionnaire to collect data than to be processed using person product moment find the relationship and its effect. The results show there is a correlation between the strategic planning to financial performance with the correlation coefficient value of 0.509 and the relationship between budget preparation to financial performance is reflected with correlation coefficient value of 0.560. The r value (correlation) is 0.578 with the contribution of these two variables on financial performance is equal to 0.335. Also there is a significant relationship between strategic planning and budget preparation to the financial performance with F-value of 40.736. The regression equation results is, Z = 1,683 + 0.132 X + 0.318 Y, where the budget preparation is a better predictor if compared with strategic planning.
Keywords: Strategic Planning, Budget, Budgeting, Financial Performance