Value-Based Management Assessment and The Improvement of Creditors' and Investors' Confidence in Bali

摘要

The main purpose of preparing financial statements is to provide information to investors and creditors. Financial performance is needed by investors and creditors to ensure that the funds they have given to the company are guaranteed in the form of investment and loans. Financial performance is calculated based on financial statements prepared by the company. The financial statements are prepared based on the accounting methods and treatments that have been prepared by the company. Consequently, the financial performance will usually looks good and increase. Other financial performance measurement methods are needed that can be measure the real condition of a company's financial based on value based management. This study aims to examine and analyze the effect of the financial performance assessment of value based management on: (1) the level of creditor confidence and (2) the level of investor confidence. The location of the study was in star-rated hotels in Bali, the study sample used purposive sampling method. Data analysis uses multiple linear regression. The results of the study prove that: (1) the financial performance assessment of value based management affects the level of creditor confidence and (2) the financial performance assessment of value based management affects the level of investor confidence. The results of this study recommend to those who are most interested in the performance of the company can be use the financial performance assessment of value based management as one of the important indicators in decision making.