The Effect of Capital Expenditures on Regional Original Income and Its Impact on the Financial Performance of the Regency/City of East Kalimantan

— This study aims to identify and analyze the effect of capital expenditure on financial performance through local revenue (PAD) in districts/cities in East Kalimantan. By using descriptive statistical analysis methods, outer model, inner model. The data used were Realization Reports of the Regional Revenue and Expenditure Budget (APBD) of 10 regencies/cities in the province of East Kalimantan. Based on the results of the inner model test in regencies/cities in the province of East Kalimantan, the p-values are smaller. Then capital expenditure has a negative or no effect on financial performance but capital expenditure has a positive but not significant effect on financial performance through regional original income in the districts/cities of East Kalimantan with the Regional Independence ratio.