Various models for firm performance:
There are many models to determine or present the firm performance and in this research three models will be present which is the profitability performance, market value performance and growth performance.
The possibility to the firm to generate the profits is the profitability performance. A profit is what remain from the earnings that the firm earned after paying all costs, specifically related to the earning of the income, for example, production of item, and other costs regarding to the business exercises. The goal of the firm is to increase the wealth of the current investors. Financial performance is a method to fulfil the shareholder’s needs and It can measure by profit, growth and market value. These three elements complementary each other. The profitability will show how the firm was able to collect its returns.
Market value performance: