Testing cause-and-effect relationships within a balanced scorecard

Ralph Kober, Deryl Northcott

Research output: Contribution to journalArticleResearchpeer-review

12 Citations (Scopus)


According to Kaplan and Norton, a fundamental tenet of the balanced scorecard (BSC) is that cause-and-effect relationships exist across measures within its four perspectives. However, prior research on BSCs has provided equivocal findings as to whether these relationships exist. Using a public sector BSC, we conduct a panel Granger causality analysis and find evidence of causal relationships. We highlight the importance of this finding from both a research and practice perspective.

Original languageEnglish
Pages (from-to)1815-1849
Number of pages35
JournalAccounting & Finance
Issue numberS1
Publication statusPublished - Apr 2021


  • Balanced scorecard
  • Causality
  • Granger causality
  • Public sector
  • Non-financial performance measures

Cite this