The Influence of Talent Factors on Business Performance

Abstract

To contribute to the debate concerning performance measurement, this study investigated some talent factors that can influence business performance of Indonesian finance industry and to provide a framework by which business leaders could assess their current management capabilities. Using purposive sampling, 56 finance companies listed on Indonesia Stock Exchange in 2012 were selected. Corporate governance aspects were measured by employing 12 talent factors and business performance was measured using profit per employee, revenue per employee, and market capitalization per employee. 12 hypotheses were tested using multiple regression analysis.  The authors concluded on 2 things. Firstly, the greater the number of audit committee members, the higher the profit per employee and secondly, higher remuneration for directors and commissioners induced better business performance, as measured by three indicators. However, larger number of employees worsens profit per employee, revenue per employee, and market capitalization per employee.