The Effect of Non Financial Measures, Independent Board of Commissioners, and Audit Quality against Firm Value, With Cost of Equity as a Moderating Variable (Published)
This study aims to analyze the effect of non-financial measures, independent board of commissioners, and audit quality on firm value, with the cost of equity as a moderating variable. The method used in this research is descriptive and verification methods. The data source is secondary data from the annual reports of manufacturing companies in the 2013-2016 period which are listed on the Indonesia Stock Exchange as many as 97 companies with 388 companies. The results showed that there are non-financial measures of customer perspective and internal process perspective, independent board of commissioner, and audit quality significantly influence firm value. Cost of equity as a moderating variable makes the influence of the independent board of commissioner weak against firm value. While the growth and learning perspective variables do not really affect the firm value. Cost of equity strengthens the influence of non-financial measures customer perspective on firm value, while in the internal process perspective, growth and learning of non-financial measures and audit quality are weak. The cost of equity will strengthen variables that can support the wishes of shareholders and will weaken variables that are independent of board of commissioner and audit quality. Other results require large costs to increase firm value. Firm value can be increased by increasing non-financial activities, the number of independent board of commissioner shares and conducting audit quality by reducing the amount of cost of equity that can weaken the value of firm value.
Performance Measurement Systems and Firms’ characteristics: Empirical evidence from Nigerian banks (Review Completed - Accepted)
The banking industry is important in every economy and this has long been emphasized by replete of studies undertaken in this connection. The Nigerian banking industry, being the second largest in sub- Saharan Africa after the South African banking industry has evolved and undergone remarkable transformation over the years. The evaluation of the Performance Measurement Systems (PMS) of banks in Nigeria— to ensure they are going concerns—becomes highly desirable and merits attention, hence the place of this research. The objectives of the research were to: identify the elements of PMS; investigate the appropriateness and effectiveness of PMS; and assess the interrelationship between the PMS and strategy of the Nigerian banking industry. Statistics such as charts, percentage analysis, Wilcoxon, Chi – square, Kruskal Wallis, and Mann- Whitney U tests were employed for data analyses. Following research findings that traditional financial measures were commonly used in the Nigerian banking industry, the study recommends the adoption of more innovative PMS; the focus on non-financial measures and customer-based measures could greatly improve performance. Also, the inclusion of performance measures like innovation, continuous improvement and risk management should be effected in the PMS of the Nigerian banking industry, to strengthen monitoring and overall improvement in the industry.