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f. Initial Public Offerings IPO When the company goes public, the financial information contained in
the prospectus is an important source of information. This information can be used as a signal to potential investors, the managers tried to
increase reported earnings.
6. Company Performance Analysis
The company is an entity form the scene of a unity of the various functions and operational performance work systematically to achieve a
certain goal. The goal of a company is an objective to be achieved all stakeholders in the company. To achieve these objectives, the parties
interested in the company should cooperate systematic way to yield optimal performance. One way to know whether a company in carrying
out its operations in accordance with a predetermined plan and in accordance with the objectives was to find out from the company
performance. Performance is a picture of the level of achievement of the results
of the implementation of an operational activity. Assessment of performance here is a method and process assessment task execution
performance of a person or group of people or work units within a company or organization in accordance with the performance standards or
goals set. In realizing the vision and mission of the organization,
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companies need to have a measure to gauge how the achievement of goals and objectives within a specific time period.
Thus, the performance as a description of the achievement of the implementation of operational activities is vital in realizing the vision and
mission of the organization. Assessment of performance is a form of reflection obligation and responsibility to report on the performance,
activities and resources have been used, accomplished and done. To assess whether the stated goals have been achieved is not something easy to do.
This is because it concerns the management aspects which are not few in number. Because of this, the company performance can be accessed
through a variety of indicators or variable to measure the success of the company. However, in general the performance appraisal company
focused on the information derived from the financial statements. General performance of the company usually represent in the financial statements.
These financial statements are useful to help investors, creditors, potential investors and other users in order to make investment decisions, credit
decisions, as well as the stock analysis determines a company prospects in the future. Through performance evaluation, the company can choose a
strategy and financial structure. Since the company performance appraisal based on financial
statements, it is to assess the performance using financial ratios. These ratios which will give the indication for the management of the investor
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assessment of the company performance and its prospects in the future. Ratios commonly used to assess the financial performance, among others,
is Tobins Q. In the capital markets, managers and investors are more interested in the market value of a company is more often using Tobins Q
as the ratio to measure financial performance. According to Darmawati 2011 Tobins Q ratio can explain various phenomena in company
activities, such as the relationship between management ownership and company value, the relationship between performance management and
profits, acquisitions, and financing policies, as well as dividends, and compensation.
Darmawati 2011 also stated that the ratio of assessed to provide good information, because it can explain various phenomena in corporate
events, such as the differences in investment and diversification decisions, the relationship between management stock ownership and corporate
value. However, the use of Tobins Q as financial ratios to demonstrate the performance of the company has a number of drawbacks. According to
Bukhari 2011 that the market value can be the size of the firm value, while the balance sheet, total equity capital of the company describe.
Assessment of the company not only refers to the nominal value, this is due to the condition of the company to change at any time significantly.
Usually the pre-crisis nominal value of the company is quite high but after crisis condition of the company slipped while nominal fixed.
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From the above statement can be concluded that the decline in the condition of the company after the crisis is sometimes not immediately
followed by a decrease in stock value. In fact, the nominal value of shares requires a certain time lag to changes according to the condition of the
company after the decrease or increase in operational performance. This does not include the risk that comes from the presence of a particular issue
or cause the movement of the stock price becomes abnormal. With such conditions, researchers not use Tobins q as a measure of company
performance, but researcher use profitability ratios for measured the company performance. Profitability ratios indicate the ability of the
company assets to generate operating profits. Profitability ratios focus on measuring the performance of the companys current and profitability
ratios are not tied to stock Ferdiana, 2012. Most researchers consider Tobins Q are better able to explain the
actual state of the company. However, the high volatility of stock price due to the influence of various macroeconomic factors can have a big
impact can affect the results of the calculation. This would not happen if we used profitability ratios, because of these considerations this study used
as an indicator of performance, profitability ratios assessment indicates the overall efficiency and performance of the company.
