The article deals with the possible influence of performance measurement methods on the financial prosperity of companies. Data on the kind of performance measurement methods (Managerial Accounting, Balanced Scorecard, TQM, etc.) used in companies and the length of their application were collected by means of a survey in a hundred and thirty-four companies based in the Czech Republic. Using the k-means clustering analysis, the respondents were then divided into twelve clusters depending on which particular performance measurement methods they use and how long they have employed them. The financial prosperity of each cluster was described by calculating the medians of a five-year average of return on assets (ROA) and a five-year average of growth of assets. These two financial indicators were selected in order to take into account two basic strategies followed by companies: the productivity strategy and the growth strategy. Finally, a graph was plotted which shows that the clusters of companies using a wide range of performance measurement methods over a long period of time are financially more successful than the rest. This article is a part of the results of the project no. 402/09/2057 “Measurement and management of the intangible assets impact on enterprise performance” financed by the Czech Science Foundation.
|Keywords:||Performance Measurement, Performance Management, Management Accounting, Balanced Scorecard, Economic Value Added, Controllership, Financial Indicators|
Lecturer, College of Polytechnics Jihlava, Jihlava, Czech Republic
English teacher, College of Polytechnics Jihlava, Brno, Czech Republic
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