The Role of Visual Attention in the Managerial Judgment of Balanced-Scorecard Performance Evaluation: Insights from Using an Eye-Tracking Device

Posted: 22 Jun 2016

See all articles by Yasheng Chen

Yasheng Chen

Xiamen University - Accounting Department

Johnny Jermias

Simon Fraser University (SFU) - Beedie School of Business

Tota Panggabean

California State University, Sacramento - College of Business Administration

Multiple version iconThere are 2 versions of this paper

Date Written: March 1, 2016

Abstract

This paper investigates the role of visual attention in managerial judgments during balanced-scorecard performance evaluations. Using the Locarna eye tracker to establish the amount of time managers spent focused on visual cues, we found that managers who look more at strategically linked performance measures are more likely to make decisions consistent with the achievement of their subordinates’ strategic objectives. When aware of strategy, managers focused more on strategically linked performance measures than on nonlinked measures. The presentation format of the strategy information did not significantly affect this focus. Our findings indicate that awareness of strategically linked performance measures, but not their presentation, appears to be important in helping managers to make better decisions. This study contributes to the management accounting literature by generating useful insights into the impact of visual attention on judgments and decision-making processes.

Keywords: Visual Attention; Balanced Scorecard; Eye Tracking; Managerial Judgment

JEL Classification: C91; D23; D83; M12; M41

Suggested Citation

Chen, Yasheng and Jermias, Johnny and Panggabean, Tota, The Role of Visual Attention in the Managerial Judgment of Balanced-Scorecard Performance Evaluation: Insights from Using an Eye-Tracking Device (March 1, 2016). Journal of Accounting Research, Volume 54, Issue 1, Pages 113–146, March 2016. Available at SSRN: https://ssrn.com/abstract=2798725

Yasheng Chen (Contact Author)

Xiamen University - Accounting Department ( email )

Siming South Road
Duxing Building No.2
Xiamen, Fujian 361005
China

HOME PAGE: http://sm.xmu.edu.cn/keyan/TeacherWeb/Teacher_Details.aspx?User_ID=557

Johnny Jermias

Simon Fraser University (SFU) - Beedie School of Business ( email )

8888 University Drive
Burnaby, British Colombia V5A 1S6
Canada
604-291-4257 (Phone)
604-291-4920 (Fax)

Tota Panggabean

California State University, Sacramento - College of Business Administration ( email )

6000 J Street
Sacramento, CA 95819-6082
United States

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