The use of multiple performance measures and the balanced scorecard (BSC) in Bangladeshi firms: An empirical investigation

Md Habib‐Uz‐Zaman Khan (Department of Accounting and Finance, Faculty of Business and Economics, Macquarie University, Sydney, Australia and Department of Business Administration, East West University, Dhaka, Bangladesh)
Abdel K. Halabi (Department of Accounting and Finance, Monash University, Churchill, Australia)
Kurt Sartorius (School of Accountancy, University of the Witswaterrand, Johannesburg, South Africa)

Journal of Accounting in Emerging Economies

ISSN: 2042-1168

Publication date: 5 July 2011

Abstract

Aims

This paper aims to examine: the status and the use of financial and non‐financial measures, and the balanced scorecard (BSC) in Bangladeshi companies; the reasons for BSC adoption; and associated problems.

Design/methodology/approach

Data via a questionnaire were obtained from the chief accounting and finance officers of a cross section of 60 Bangladeshi companies listed on the Dhaka Stock Exchange. A combination of descriptive statistics, bi‐variate, and multi‐variate techniques of statistics were used to test three research questions.

Findings

The results indicate that financial measures are more widely used, but that 78.4 per cent of companies use some non‐financial indicators. Further, the exercise of a full BSC is limited to only 10 per cent of the sample. The results also show that companies adopt these frameworks to aid decision making, and the problems associated with the adoption of BSC include a cost‐benefit perspective and a lack of management support.

Practical implications

The findings suggest many companies are using a dashboard of financial and non‐financial performance measures that could possibly be a precursor to adopting more holistic performance measurement frameworks like the BSC.

Originality/value

There have been recent calls for more in‐depth analysis of the management accounting systems of emerging countries and these findings contribute further knowledge to an under researched area. In particular, the paper demonstrates how a performance measurement framework may evolve in an emerging country context.

Keywords

Citation

Khan, H., Halabi, A.K. and Sartorius, K. (2011), "The use of multiple performance measures and the balanced scorecard (BSC) in Bangladeshi firms: An empirical investigation", Journal of Accounting in Emerging Economies, Vol. 1 No. 2, pp. 160-190. https://doi.org/10.1108/20421161111138512

Publisher

:

Emerald Group Publishing Limited

Copyright © 2011, Emerald Group Publishing Limited

To read the full version of this content please select one of the options below

You may be able to access this content by logging in via Shibboleth, Open Athens or with your Emerald account.
To rent this content from Deepdyve, please click the button.
If you think you should have access to this content, click the button to contact our support team.