This file is part of IDEAS, which uses RePEc data


[ Papers | Articles | Software | Books | Chapters | Authors | Institutions | JEL Classification | NEP reports | Search | New papers by email | Author registration | Rankings | Volunteers | FAQ | Blog | Help! ]

New’ Performance Measures: Determinants of Their Use and Their Impact on Performance

Author info | Abstract | Publisher info | Download info | Related research | Statistics
Author Info
Verbeeten, F.H.M. (Erasmus Research Institute of Management (ERIM), RSM Erasmus University)
Abstract

This study investigates the extent to which Dutch organizations use ‘new’ performance measures to deal with the perceived inadequacies of traditional accounting performance measures. In addition, the determinants of the use of these ‘new’ performance measures are documented; finally, the alignment hypothesis is tested. Using survey data from Dutch firms, I find that non-financial measures appear to be used most often in addition to more traditional performance measures; economic value measures and subjective measures appear to be used to a lesser extent. Second, the results indicate that the importance of the shareholder value goal and size are positively related to the use of economic value measures. The importance of the shareholder value goal, a growth mission, task culture and size are all positively associated with the use of non-financial measures. The (relative) use of subjective measures is negatively related to size. Finally, I find no support for the alignment hypothesis that a mismatch between the firm’s strategic and contextual characteristics and its performance measurement system adversely affect performance.

Download Info
To download:

If you experience problems downloading a file, check if you have the proper application to view it first. Information about this may be contained in the File-Format links below. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

File URL: http://hdl.handle.net/1765/6993
File Format: application/pdf
File Function:
Download Restriction: no

Publisher Info
Paper provided by Erasmus Research Institute of Management (ERIM), ERIM is the joint research institute of the Rotterdam School of Management, Erasmus University and the Erasmus School of Economics (ESE) at Erasmus University Rotterdam. in its series Research Paper with number ERS-2005-054-F&A Revision_Date: 2009-07-29.

Download reference. The following formats are available: HTML (with abstract), plain text (with abstract), BibTeX, RIS (EndNote, RefMan, ProCite), ReDIF
Length:
Date of creation: 14 Oct 2005
Date of revision:
Handle: RePEc:dgr:eureri:30007630

Contact details of provider:
Web page: http://www.erim.eur.nl/

For technical questions regarding this item, or to correct its listing, contact: (ERIM Series Handler at the ERIM Office).

Related research
Keywords: contingency theory; economic value measures; non-financial performance measures; subjective performance measures; survey;

This paper has been announced in the following NEP Reports:

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
  1. Christie, Andrew A. & Joye, Marc P. & Watts, Ross L., 2003. "Decentralization of the firm: theory and evidence," Journal of Corporate Finance, Elsevier, vol. 9(1), pages 3-36, January. [Downloadable!] (restricted)
    Other versions:
  2. Hartmann, Frank G. H., 2000. "The appropriateness of RAPM: toward the further development of theory," Accounting, Organizations and Society, Elsevier, vol. 25(4-5), pages 451-482, May. [Downloadable!] (restricted)
  3. Chapman, Christopher S., 1997. "Reflections on a contingent view of accounting," Accounting, Organizations and Society, Elsevier, vol. 22(2), pages 189-205, February. [Downloadable!] (restricted)
  4. Baker, George & Gibbons, Robert & Murphy, Kevin J, 1994. "Subjective Performance Measures in Optimal Incentive Contracts," The Quarterly Journal of Economics, MIT Press, vol. 109(4), pages 1125-56, November. [Downloadable!] (restricted)
    Other versions:
  5. Abernethy, Margaret A. & Brownell, Peter, 1999. "The role of budgets in organizations facing strategic change: an exploratory study," Accounting, Organizations and Society, Elsevier, vol. 24(3), pages 189-204, April. [Downloadable!] (restricted)
  6. Gordon, Lawrence A. & Miller, Danny, 1976. "A contingency framework for the design of accounting information systems," Accounting, Organizations and Society, Elsevier, vol. 1(1), pages 59-69, January. [Downloadable!] (restricted)
  7. Bushman, Robert M. & Indjejikian, Raffi J. & Smith, Abbie, 1996. "CEO compensation: The role of individual performance evaluation," Journal of Accounting and Economics, Elsevier, vol. 21(2), pages 161-193, April. [Downloadable!] (restricted)
  8. Perera, S. & Harrison, G. & Poole, M., 1997. "Customer-focused manufacturing strategy and the use of operations-based non-financial performance measures: A research note," Accounting, Organizations and Society, Elsevier, vol. 22(6), pages 557-572, August. [Downloadable!] (restricted)
  9. Abernethy, Margaret A. & Lillis, Anne M., 1995. "The impact of manufacturing flexibility on management control system design," Accounting, Organizations and Society, Elsevier, vol. 20(4), pages 241-258, May. [Downloadable!] (restricted)
  10. Govindarajan, V. & Gupta, Anil K., 1985. "Linking control systems to business unit strategy: impact on performance," Accounting, Organizations and Society, Elsevier, vol. 10(1), pages 51-66, January. [Downloadable!] (restricted)
  11. Luft, Joan & Shields, Michael D., 2003. "Mapping management accounting: graphics and guidelines for theory-consistent empirical research," Accounting, Organizations and Society, Elsevier, vol. 28(2-3), pages 169-249. [Downloadable!] (restricted)
  12. Simons, Robert, 1987. "Accounting control systems and business strategy: An empirical analysis," Accounting, Organizations and Society, Elsevier, vol. 12(4), pages 357-374, June. [Downloadable!] (restricted)
  13. Wallace, James S., 1997. "Adopting residual income-based compensation plans: Do you get what you pay for?," Journal of Accounting and Economics, Elsevier, vol. 24(3), pages 275-300, December. [Downloadable!] (restricted)
  14. Otley, David T., 1980. "The contingency theory of management accounting: Achievement and prognosis," Accounting, Organizations and Society, Elsevier, vol. 5(4), pages 413-428, October. [Downloadable!] (restricted)
  15. Ittner, Christopher D. & Larcker, David F., 2001. "Assessing empirical research in managerial accounting: a value-based management perspective," Journal of Accounting and Economics, Elsevier, vol. 32(1-3), pages 349-410, December. [Downloadable!] (restricted)
  16. Gerald T. Garvey & Todd T. Milbourn, 2000. "EVA versus Earnings: Does it Matter which is More Highly Correlated with Stock Returns?," Claremont Colleges Working Papers 2000-52, Claremont Colleges. [Downloadable!]
  17. Ittner, Christopher D. & Larcker, David F. & Randall, Taylor, 2003. "Performance implications of strategic performance measurement in financial services firms," Accounting, Organizations and Society, Elsevier, vol. 28(7-8), pages 715-741. [Downloadable!] (restricted)
  18. Sunil Dutta & Stefan Reichelstein, 2003. "Leading Indicator Variables, Performance Measurement, and Long-Term Versus Short-Term Contracts," Journal of Accounting Research, Blackwell Publishing, vol. 41(5), pages 837-866, December. [Downloadable!] (restricted)
  19. Langfield-Smith, Kim, 1997. "Management control systems and strategy: A critical review," Accounting, Organizations and Society, Elsevier, vol. 22(2), pages 207-232, February. [Downloadable!] (restricted)
  20. Deshpande, Rohit & Parasuraman, A., 1986. "Linking corporate culture to strategic planning," Business Horizons, Elsevier, vol. 29(3), pages 28-37. [Downloadable!] (restricted)
  21. Cavalluzzo, Ken S. & Ittner, Christopher D., 2004. "Implementing performance measurement innovations: evidence from government," Accounting, Organizations and Society, Elsevier, vol. 29(3-4), pages 243-267. [Downloadable!] (restricted)
  22. Waterhouse, J. H. & Tiessen, P., 1978. "A contingency framework for management accounting systems research," Accounting, Organizations and Society, Elsevier, vol. 3(1), pages 65-76, February. [Downloadable!] (restricted)
  23. Govindarajan, V., 1984. "Appropriateness of accounting data in performance evaluation: An empirical examination of environmental uncertainty as an intervening variable," Accounting, Organizations and Society, Elsevier, vol. 9(2), pages 125-135, June. [Downloadable!] (restricted)
Full references

Statistics
Access and download statistics

Did you know? All RePEc services are meant to be be free forever, as they are all run by volunteers.

This page was last updated on 2009-12-2.

This information is provided to you by IDEAS at the Department of Economics, College of Liberal Arts and Sciences, University of Connecticut using RePEc data on a server sponsored by the Society for Economic Dynamics.