ACRN Journal of Finance and Risk Perspectives 9 (2020) 113-119 * Corresponding author. E-Mail address: rkountur@gmail.com https://doi.org/10.35944/jofrp.2020.9.1.009 ISSN 2305-7394 Contents lists available at SCOPUS ACRN Journal of Finance and Risk Perspectives journal homepage: http://www.acrn-journals.eu/ A Factor Analysis of Corporate Financial Performance: Prospect for New Dimension Ronny Kountur* ,1 , Lady Aprilia 2 1 PPM School of Management 2 Executive Development Program of PPM Manajemen ARTICLE INFO ABSTRACT Article history: Received 4 March 2020 Revised 8 April 2020 and 23 April 2020 Accepted 4 May 2020 Published 24 June 2020 This study aims to find the dimensions of financial indicators where both ratio and non-ratio indicators are accommodated. It is expected that the new dimensions of financial indicators be found. Both Exploratory and Confirmatory Factor Analysis is used in analyzing the data. Data are taken from 120 companies listed in Indonesian Stock Exchange (IDX). Twenty financial indicators from the financial reports of each company are identified. While it has been a common practice to use ratio in indicating financial performance, it is not common to use an individual value from financial statements as financial indicators. This study shows that financial indicators can be grouped into four dimensions; they are Operational Performance, Asset-Income Performance, Owner Returns Performance and Leverage Performance. All of the non-ratio indicators that are expressed in the amount are grouped in the Asset-Income Performance dimension. New dimensions of financial performance indicators that do not commonly exist in this study, they are Asset-Income, and Leverage Performance. With the new dimension, non-financial performances such as customer satisfaction, corporate social responsibility, reputation, nepotism, and professionalism may be detected. Keywords: Financial performance Corporate finance Factor analysis Introduction Managers need financial information to evaluate corporate performance. Aside from evaluation, financial information is also needed in planning and decision-making purposes. That is why it is necessary to present financial information in an appropriate way that is well understood by users, in most cases are managers and investors. Several ways of looking at corporate performance. One way is to look at corporate performance from an operational point of view (Chakravarthy, 1986). Reputation and customer satisfaction are elements of operational performance (Wang et al., 2012), also goals achievement (Etzioni, 1964), and engaging in corporate social responsibility (Fisman, Heal, and Nair, 2008; Wang and Qin, 2010; Cellier and Chollet, 2011; Scholtens and Kang, 2013). Organizational performance can also be viewed from a financial point of view (Venkarraman and Ramanujam, 1986), where studies show that the most widely used measurement of corporate performance is profit, growth, and efficiency (Brush and Vanderwert, 1992) which link to the financial performances. It is because financial rewards seem to be the most fundamental motive for engaging in business (Anand et al., 2012; Wang and Chen, 2013). However, non-financial performance started to get more attention from managers and investors than financial performance, such as non-financial performance as customer satisfaction and reputation (Wang et al., 2012). There are many ways of grouping financial indicators into dimensions. In the study of Gottardo & Moisello (2015), they were using six dimensions; those are, liquidity (liquid assets/total asset), growth ((sales/salest-1 ) – 1), leverage (financial debts/total assets), firm market share (salesown/∑salesothers), capital turnover (sales/capital employed), and legged performance (ROAEBIT t-1, ROAnet income t-1). Among all of these financial performance