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Tahsin Nazim. A critical analysis of Balanced Scorecard as a performance measurement tool: an overview of its usage and sustainability. Academia.Edu 2011. https://www.academia.edu/6154100/_A_critical_analysis_of_Balanced_Scorecard_as_a_performance_ measurement_tool_an_overview_of_its_usage_and_sustainability_.

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Article

Impact of Balanced Scorecard Implementation on Financial Performance of Saudi Listed Companies

1College of Business and Economics, Qassim University


Journal of Behavioural Economics, Finance, Entrepreneurship, Accounting and Transport. 2016, Vol. 4 No. 1, 8-12
DOI: 10.12691/jbe-4-1-2
Copyright © 2016 Science and Education Publishing

Cite this paper:
Ibrahim Sweiti, Upendra Lele. Impact of Balanced Scorecard Implementation on Financial Performance of Saudi Listed Companies. Journal of Behavioural Economics, Finance, Entrepreneurship, Accounting and Transport. 2016; 4(1):8-12. doi: 10.12691/jbe-4-1-2.

Correspondence to: Ibrahim  Sweiti, College of Business and Economics, Qassim University. Email: im.alswaiti@qu.edu.sa

Abstract

Since its introduction in 1992, Balance Score Card (BSC) has been adopted by companies as a strategic management tool to improve their overall performance. This study aims to examine the impact of implementation of Balanced Scorecard (BSC) on the financial performance of Listed Companies in the Kingdom of Saudi Arabia. A sample of 57 companies from different business sectors was taken for this study. Financial performance of companies adopting BSC was compared with those who have not adopted BSC. Annual performance data for key financial parameters over a five-year period was taken for this comparison, and the average performance for these parameters was compared using t statistic. It was observed that adoption of BSC significantly improves the revenue growth, while it does not have much impact on other financial parameters such as Net margin, Current ratio and Operating Cash Flow/Net income.

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