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The Role of Visual Attention in the Managerial Judgment of Balanced‐Scorecard Performance Evaluation: Insights from Using an Eye‐Tracking Device

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  • YASHENG CHEN
  • JOHNNY JERMIAS
  • TOTA PANGGABEAN

Abstract

This paper investigates the role of visual attention in managerial judgments during balanced‐scorecard performance evaluations. Using the Locarna eye tracker to establish the amount of time managers spent focused on visual cues, we found that managers who look more at strategically linked performance measures are more likely to make decisions consistent with the achievement of their subordinates’ strategic objectives. When aware of strategy, managers focused more on strategically linked performance measures than on nonlinked measures. The presentation format of the strategy information did not significantly affect this focus. Our findings indicate that awareness of strategically linked performance measures, but not their presentation, appears to be important in helping managers to make better decisions. This study contributes to the management accounting literature by generating useful insights into the impact of visual attention on judgments and decision‐making processes.

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  • Yasheng Chen & Johnny Jermias & Tota Panggabean, 2016. "The Role of Visual Attention in the Managerial Judgment of Balanced‐Scorecard Performance Evaluation: Insights from Using an Eye‐Tracking Device," Journal of Accounting Research, Wiley Blackwell, vol. 54(1), pages 113-146, March.
    • Handle: RePEc:bla:joares:v:54:y:2016:i:1:p:113-146
    DOI: 10.1111/1475-679X.12102
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    7. Rikhardsson, Pall & Yigitbasioglu, Ogan, 2018. "Business intelligence & analytics in management accounting research: Status and future focus," International Journal of Accounting Information Systems, Elsevier, vol. 29(C), pages 37-58.
    8. Svitlana Kuznetsova, 2017. "Evaluation of Accounting Information for Making Management Decisions," Oblik i finansi, Institute of Accounting and Finance, issue 2, pages 21-26, June.
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