Strategic Performance Measurement and External Reporting

Abstract:     
The emerging view among managers and academicians argues for an expanded reporting system to provide more comprehensive information about organizational performance. Little systematically-gathered evidence is available, however, concerning the views of the investment community on this matter. This article reports the results of a survey of 420 senior investment officers, directors of research, and financial analysts regarding the use, predictive value, and ease of acquisition of a variety of financial and nonfinancial performance measures. The patterns of use that emerge from the study paint a picture in which analysts go well beyond the traditional financial measures and use a broad range of leading indicators to assess long-term performance.

JEL Classification: G3

working papers series