Research Article
Performance Evaluation Model of Startup Companies in ASEAN Countries
@INPROCEEDINGS{10.4108/eai.13-9-2023.2341230, author={Retno Yuni Nur Susilowati and Liza Alvia and Neny Desriani}, title={Performance Evaluation Model of Startup Companies in ASEAN Countries}, proceedings={Proceedings of the 6th International Conference of Economics, Business, and Entrepreneurship, ICEBE 2023, 13-14 September 2023, Bandar Lampung, Indonesia}, publisher={EAI}, proceedings_a={ICEBE}, year={2023}, month={12}, keywords={startup investor protection capital market development financial performance firm value asean}, doi={10.4108/eai.13-9-2023.2341230} }- Retno Yuni Nur Susilowati
Liza Alvia
Neny Desriani
Year: 2023
Performance Evaluation Model of Startup Companies in ASEAN Countries
ICEBE
EAI
DOI: 10.4108/eai.13-9-2023.2341230
Abstract
This study aims to examine the evaluation model of financial performance and firm value of startup companies in ASEAN countries. The data used are startup companies in ASEAN, namely Singapore, Indonesia, and Malaysia. The research data is in the form of the financial statements of these companies for the last 5 years (2017-2021). The dependent variable in this study is financial performance (measured by return on invested capital and return on equity) and firm value as measured by Tobin's Q. The independent variable in this study is the investor protection offer (measured by a score developed based on survey data by the World Economic Forum) and capital market developments. This study will control several factors of company size, the ratio of company debt to long-term assets (leverage), and company growth. The results of H1a is supported, meaning that the protection of a country's investors has a positive effect on the financial performance of startup companies, both measured by ROIC and ROE. Next, statistically H1b is supported, meaning that investor protection at the country level has a positive effect on the value of startup companies, as measured by Tobin's Q. Hypothesis testing shows that statistically H2a is not supported, it means the development of a country's capital market has no effect on the company's financial performance startups. Finally, the test shows H2b is not supported because capital market developments affect firm value in the opposite direction