Linking the Balanced Scorecard to Organizational Shareholders’ Expectations

Abstract

The Balanced Scorecard (BSC) has been proposed as a nearpanacea for the strategic management ills that may beset an organization. However, the strategic implications of internal and external performance measurement have not been demonstrated as reliable either for a sample within one industry or across industries. This study proposes a new model that translates the BSC from a three-part internal and one-part external performance measurement system into a comprehensive measurement system that includes stakeholders' a priori expectations and that merges those expectations with performance measurement systems that will enable organizations to satisfy the often exclusive expectations of all stakeholders.

Corporate Governance on the Corporate Characteristics- Managerial Accounting link

“…The novel managerial tools have imposed an influence on the entire process of managerial accounting, transferring its simple task of financial determination to a more intricate task of producing corporate performance by making the best uses of accessible corporate resources. Besides, implied in a study on balanced scorecard by Caldarola (2016), balanced scorecard as a part of the managerial accounting system is a causality of organizational performance; while, corporate governance is suggested to positively impact on the application of managerial accounting tools for business (Cromie et al, 1995;Salvato and Melin, 2008;Sam et al, 2012;Christine et al, 2011). From the work by Baron and Kenny (1986), it can suggest an intervention of corporate governance in the impact of corporate characteristics on the application of managerial accounting tools.…”