Middle Management's Performance Metrics under Internal Transfer System

21 Pages Posted: 12 Nov 2012

See all articles by Peter Dehong Wang

Peter Dehong Wang

Beijing Foreign Studies University

Fusheng Yu

affiliation not provided to SSRN

Date Written: January 8, 2012

Abstract

This paper studies the performance metrics of the middle management in the cost centers of firms from the empirical perspective of internal transfer price mechanism. As firms’ middle managements are usually in charge of business units, this paper will use these business units’ results as the performance metrics of the respective middle management who are responsible for these business units. This paper develops a comprehensive methodology to forecast the performance results for business units, which could be specified as the performance targets of the respective middle management in next performance period. Furthermore, this paper develops a feasible process to predict the extreme performance of business units in next measurement period, and the results could become important components of comprehensive performance measurement for the respective middle management.

Keywords: middle management, performance metrics, internal transfer system, performance target, operation performance, accounting performance, performance extreme.

JEL Classification: M41, J53, C53, J41

Suggested Citation

Wang, Dehong and Yu, Fusheng, Middle Management's Performance Metrics under Internal Transfer System (January 8, 2012). Annual Meeting 2012 (AM2012) of American Accounting Association (AAA) at Washington DC, Available at SSRN: https://ssrn.com/abstract=2173709

Dehong Wang (Contact Author)

Beijing Foreign Studies University ( email )

No.19 North Xisanhuan Avenue, Haidian District
Beijing, Beijing 100089
China

Fusheng Yu

affiliation not provided to SSRN

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