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 capa
bilities. 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 em
ployee, and market capitalization per employee. 12 hypotheses were tested using multiple re
gression 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 indi
cators. However, larger number of employees worsens profit per employee, revenue per em
ployee, and market capitalization per employee.