The impact of the corporate balanced scorecard on corporate control-A research note

Kalle Kraus, Johnny Lind

Research output: Contribution to journalArticleResearchpeer-review

48 Citations (Scopus)

Abstract

The paper explores the adoption of the corporate balanced scorecard (CBSC) and its impact on corporate control of business units. Following interviews with senior corporate managers in 15 of Sweden's largest multinational companies, 8 were found to adopt CBSC. However, CBSC had little impact on control at the corporate level. Corporate control was financially focused in all the companies: mainly financial measures were important, standards were only set for financial measures and rewards were largely based on financial performance measures. Top management's need for simplicity and comparability internally, and capital market pressures motivated the financial focus.

Original languageEnglish
Pages (from-to)265-277
Number of pages13
JournalManagement Accounting Research
Volume21
Issue number4
DOIs
Publication statusPublished - 1 Dec 2010
Externally publishedYes

Keywords

  • Capital market pressure
  • Corporate balanced scorecard
  • Corporate control
  • Financial focus

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