The Significant Impact of Financial Performance Assessment Value-based Management at Star Hotels in Bali

Bali is very dependent on the tourism industry. Many entities rely on business from tourism industry including large hotels owned by foreign investors. The existence of hotels in Bali has a huge effect on economic growth. During this time, the hotel performance is measured more based on the financial ratios. This financial ratio is very dependent on the method of accounting treatment that is used in composing the company's financial report. The things that caused the company's performance to look good and improved, even though it could not have increased and even decreased. Performance measures are needed which should emphasize value or value-based management. The purpose of this study was to determine the effect of financial performance assessment with Value-based Management at star hotels in Bali, especially toward: (1) the enhancement of the room occupancy rates, (2) the enhancement of profits, (3) the enhancement of creditor's confidence, and (4) the enhancement of confidence of investor and potential investor. The choice of hotels is based on the following considerations: (1) the extent of business carried out, (2) foreign ownership, and (3) the responsibility of foreign investor toward the preservation of Bali. Determination of the sample using purposive sampling method. The effect of valuebased management is tested by multiple linear regression. The results of the study prove that Value-based Management has a significant influence on: (1) the enhancement of the room occupancy rates, (2) the enhancement of profits, (3) the enhancement of creditor confidence, and (4) the enhancement of confidence of investor and potential investor.     Keywords: financial performance, value-based management, hote