Assessment of Criteria for Performance Excellence (KPKU) and Firm Performance: Evidence from Indonesia

Journal of Security and Sustainability Issues, Vol. 9, No. 3, 2020

12 Pages Posted: 21 Apr 2020

See all articles by Melinda Cahyaning Ratri

Melinda Cahyaning Ratri

Airlangga University

Iman Harymawan

Universitas Airlangga

John Nowland

City University of Hong Kong

Date Written: 2019

Abstract

This study aims to examine whether the assessment of Criteria for Performance Excellence (KPKU) is related to the firm performance of States-Owned Enterprise (SOE) in Indonesia. This study uses 82 firms-year observations from 19 State-Owned Enterprise listed on the Indonesia Stock Exchange (IDX) for the period 2009 to 2018. This study found that KPKU assessment was positively related to firm performance. This shows that KPKU assessment can be a signal that the company has good performance. The study also found that the positive relationship between KPKU assessment and company performance is stronger in companies audited by Big 4 and in big-sized companies. This study is the first research that discusses the relationship between KPKU assessment and firm performance. This study may be useful for practitioners and academics that are interested in the subject of SOE performance assessment. The results suggest to conduct a regular KPKU assessment because it can be useful to provide a positive signal for shareholders and potential investors.

Keywords: KPKU Assessment, Firm Size, Firm Performance, States Owned Company

JEL Classification: L25, G30, M10

Suggested Citation

Ratri, Melinda Cahyaning and Harymawan, Iman and Nowland, John, Assessment of Criteria for Performance Excellence (KPKU) and Firm Performance: Evidence from Indonesia (2019). Journal of Security and Sustainability Issues, Vol. 9, No. 3, 2020, Available at SSRN: https://ssrn.com/abstract=3562010

Melinda Cahyaning Ratri

Airlangga University ( email )

Jl. Darmawangsa Dalam 2
Surabaya, 60286
Indonesia

Iman Harymawan (Contact Author)

Universitas Airlangga ( email )

JL. Airlangga no 4
Surabaya, East Java 60286
Indonesia

HOME PAGE: http://www.feb.unair.ac.id

John Nowland

City University of Hong Kong ( email )

83 Tat Chee Avenue
Kowloon
Hong Kong
China

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