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This study aims to examine performance evaluation measures across private sector companies in an Egyptian context and pinpoints obstacles that may limit the adoption of the balanced scorecard (BSC).

Uses a questionnaire that was mailed to a sample of 150 companies listed in the Egyptian stock exchange market. The analysis is directed at determining managers' perceptions of performance evaluation measures within the Egyptian private sector. Descriptive statistics, frequency of use of companies' practices and possible relationships between variables provide the basis for discussion.

Companies rely on both financial and non‐financial measures of performance evaluation. The profit margin, as a financial measure, is also the most commonly used performance measure. Customer satisfaction is the most commonly used non‐financial measure of performance evaluation. The BSC has wide spread use in the Egyptian companies surveyed, but the level of use of multi‐dimensional indicators is significantly low. The survey provides considerable insight into obstacles inhibiting the adoption of the BSC. The most significant obstacle is the inadequacy of implemented information systems.

Survey results restrict generalization, as the sampling design cannot be claimed to represent all Egyptian companies. Also a relatively low response rates must be taken into account.

Provides an insight into performance evaluation practices in the private sector in a developing country.

Two case studies in health and safety management identified key performance indicators that reflected a company’s overall performance obtained from a full benchmarking audit. An intra‐company benchmarking audit, comparing operational health and safety management performance was completed within 12 semi‐autonomous subsidiaries of a large national food manufacturer. A significant (r = 0.985) positive relationship was obtained between ten operational performance indicators and overall performance. The key factors were found to have a common theme relating to employer‐employee openness in communication on health and safety issues. An inter‐company benchmarking audit comparing strategic health and safety management performance was completed within eight companies in the small, multi‐site retail sector. A significant (r = 0.988) positive relationship was obtained between ten strategic performance indicators and overall performance. The key factors did not have a common theme but there was evidence that integration of health and safety management into long‐term business decision making was a strong factor.

The Article seeks to identify the configuration of executive directors conditional option and LTIP arrangements used to align the interest of the company’s directors and shareholders.

The article presents an empirical study of the option and LTIP arrangements (current and previous) of 51 major UK companies. The article focuses on the configuration of option schemes and LTIPs in respect of three critical elements: the performance target selected, the comparator used to benchmark performance and the quantitative performance target level requirement to be achieved to trigger rewards. The period 1989‐2002, covered by the research indicates a substantial degree of “experimentation” with many companies amending their original option schemes and LTIPs and a larger number of other companies introducing new arrangements. A substantial number of schemes can be characterised as being “undemanding” rewarding average rather than excellent performance.

It is It is proposed (in a follow up paper) to econometrically test for associations between particular configurations (identified in this article) and actual corporate financial performance, i.e. which configurations have the most robust impact on performance.

The author makes a number of recommendations aimed at making option schemes and LTIP, more “stretching”, rewarding only excellent rather than average performance.

This is the first paper to explicitly look at the components of option schemes and LTIPs in a detailed way, questioning the merits/demerits of the targets and comparators commonly used to evaluate performance.

UK plcs use option schemes and increasingly long‐term incentive plans (LTIP’s) to reward their executive directors in order to improve corporate performance and align their interests more closely with those of the shareholders of the company. This paper presents a study of the option and LTIP arrangements used by a sample of 51 large UK companies over the period 1994‐2001. The general finding is that a substantial proportion of the schemes are “undemanding” rewarding average rather than exceptional performance.

I seek to identify whether cash flow management can affect the performance and risk of the Greek listed companies.

This study examines the relationship of cash flow management with performance and risk, using a sample of 80 non-financial companies listed in the Athens Exchange. The study covers the period 2018–2022, and panel data analysis is applied. Both financial performance and stock return are taken into consideration, while risk concerns the volatility of the companies’ share prices. The various explanatory variables used include the net cash flow, free cash flow, cash conversion cycle days, cash flow from operating activities, cash flow from investing activities, cash flow from financing activities, inventory days, customer days and supplier days.

The empirical results provide evidence of a positive relationship between financial performance and net cash flow and free cash flow. In addition, operating cash flow is positively related to financial performance. The opposite is the case for investing and financing cash flow. Finally, some evidence of a negative relationship between financial performance and inventory and customer days is provided too. On the other hand, stock return and risk are not related to the cash flow management variables at all.

To the best of my knowledge, this is one of the few studies to examine the relationship of cash flow management with performance and risk, using data from the Greek stock market. The results can form an effective selection tool for investors seeking Greek companies with the highest financial performance potential, which may reward them with higher dividends.

The purpose of this paper is to analyse the impact of political connections and gender diversity on the performance of Iberian companies as a singular market and considering Portugal and Spain separately.

The authors used panel data methodology, specifically GMM system estimation model by Arellano and Bond (1991) for the period from 2015 to 2020.

Results show that the performance of listed Iberian companies is influenced by political connections, by gender diversity and that gender diversity has a mitigating effect on the effects of political connections in each country. The mitigating effect of women is evident in both Portugal and Spain, as they are more cautious and principled, which is valued by short-term investors interested in an immediate investment. However, considering the Iberian Peninsula as a whole, the results indicate that – in the long term – women's political relationships can benefit performance through a better reputation and image, which can lead to better social and economic results in the long term.

To the best of the authors’ knowledge, this paper is original and covers an important gap in the literature when considering political connections and women's impact on these connections as determinants of the performance of Iberian companies.

This study examines the links between financial performance and executive compensation for high-performance companies (HPC). HPC display sustained and superior cash flow returns, asset growth, and total shareholder returns. In previous empirical analysis, HPC companies displayed specific identifiable financial performance drivers and measures when compared to companies in the S&P 500 (Needles et al., 2004). Most recently, HPC sustained their high performance when compared to the S&P 500 over varied economic periods. Further, the research identified operating asset management characteristics of these companies, especially as they relate to the cash cycle (Needles et al., 2004). Continuing this stream of research, this study first identifies the financial and non-financial performance measures related to compensation of top management of HPC as reported in the companies’ public disclosures. Then, these findings for HPC are matched to a set of comparable non-HPC. Finally, we evaluate the stated performance measures for executive compensation in light of the performance drivers and measures identified by previous research to be distinguishing characteristics of HPC. We hypothesize that HPC will more closely align stated performance measures for executive compensation with performance characteristics that have been shown to be characteristics of HPC. We find that HPC are more focused and unambiguous in their use of both financial and non-financial performance measures in executive compensation.

Purpose – This study investigates the links between strategy, execution, and financial performance with particular attention to the underlying performance drivers that describe how a company executes strategy to create financial value.

Methodology – This study empirically investigates companies in the United States and 22 other countries over a 20-year period (11 successive 10n-year periods: 1988–2007): (1) to compare financial performance characteristics of HPC versus non-HPC; (2) to study the sustainability of performance in HPC; and (3) to identify the companies that exit or enter the HPC classification and the performance drivers and performance measures that characterized the change in HPC classification.

Findings – The 20-year longitudinal results confirm the results of prior studies as to the long-term superior performance of HPC over other companies (Objective 1). For sustaining HPC, results were consistent as to total asset management, profitability, financial risk, and liquidity (Objective 2). Declining HPC companies fail at total asset management, profitability, and operating asset management and significantly increase their financial risk. Emerging HPC companies improve liquidity through improved operating asset management and cash flows (Objective 3).

Practical implications – To become a HPC management must generate increased cash flows from income, manage receivables and inventory vigorously, and reduce its debt in relation to equity. Thereafter, management must concentrate on maintaining its asset turnover and growth in revenues while maintaining its profit margin and not increasing its debt to equity.

Value of the paper – The results provide direction for management of companies that aspire to HPC status and to maintain HPC status.

The present study investigates whether companies that exhibit high performance characteristics in the pre-financial crisis period can maintain their high performance in the financial crisis period of 2007–2009 and, in particular, the post-financial crisis period of 2010–2011.

The current study of 1,473 companies in 25 countries and 66 industries (MSCI index) (1) extends the empirical research of prior studies through the year 2011; (2) identifies the operating characteristics (performance drivers and performance measures) and associated risk factors which were most critical with regard to sustaining, exiting, and entering HPC companies during the five 10-year periods since 1998–2007, and (3) summarizes conclusions about HPC results from the 13 ten-year periods (1989–1998 to 2002–2011) in this stream of research.

(1) Companies that sustain high performance over periods of financial stress clearly excel in asset turnover performance driver and on the performance measures of growth in revenues, profit margin, return on equity and return on assets. Sustaining HPC had less debt than other companies and consistent cash flow yields. Operating turnover ratios became less important in recent years as an indicator of high performance. (2) Although exiting companies maintained profitability, financial risk and liquidity, the key factor in their dropping out of HPC status is their failure to grow revenues. (3) Entering companies did not exhibit the superior performance in all categories.

The results provide strategic direction for management of companies that aspire to HPC status and to maintain HPC status once gained, particularly in times of global financial stress.

Integrated management is the process of including environmental, social, and governance (ESG) performance in close coordination between business processes, functions, groups, organizations, and systems. In this context, decision-makers can better understand the dynamic systems in which they operate; define success based on sustainability-based performance frontier; guide decision making with strategic valuation of environmental and social guidelines; adhere to a timeline of actions that moves the enterprise toward a sustainable society; operationalize dynamic goals, for example, the UN Sustainable Development Goals (SDGs); and support processes for planning with decision analysis tools to monitor and guide change management. Information within this chapter will explore how sustainability in businesses, that is, integrated management, is already underway in leading multinational companies, and can be found within any business function, and in supply chains. The value that sustainability brings to an organization is important to understand as each day there is a growing amount of data to draw from. While 80% of the value of an enterprise is within intangibles, hundreds of ESG performance metrics are now available to researchers and practitioners to make the intangible tangible. With a look on how these ESG performance metrics and the social cost of carbon are used by practitioners and researchers, a number of research propositions call for improved financial decision analysis and a new performance frontier.