A review of the Balanced Scorecard method through comparing the relevant literature of selected European countries

Abstract

The importance of evaluating companies and measuring their performance is evidenced by a number of cases, for example, global phenomena going on currently. Not so long ago, in 2013, the European Parliament and the Council adopted the Directive 2013/34/EU, which is mandatory and provides comparable and clear financial statements of companies. Therefore, the study applies mainly the method of scientific literature synthesis and compares studies carried out in various Central and Eastern European countries. They are related to the use of the Balanced Scorecard performance measurement method applied in stock companies. In parallel, the perspectives of key stakeholders are also reviewed based on their published reporting practices. The comparison shows that the Balanced Scorecard method is really suitable for external users. Important information, measures and performance indicators can be reported and analysed using the company’s annual reports.