Are nonfinancial measures leading indicators of financial performance? An analysis of customer satisfaction
Article Abstract:
Results of a study that investigated the value relevance of customer satisfaction measures in accounting demonstrated a positive and statistically significant relationship between these measures and future accounting performance. The research involved the analysis of customer-level, business-unit and firm-level data to arrive at its conclusions. Findings showed that, although positive and statistically significant, most of the relations were found to be nonlinear, with performance benefits decreasing at high satisfaction levels. The results also suggest that customer satisfaction measures are economically relevant to the stock market but are not fully manifested in current accounting book values. Finally, the public announcement of the measures was found to be statistically related to excess stock market returns for a 10-day announcement period.
Publication Name: Journal of Accounting Research
Subject: Business
ISSN: 0021-8456
Year: 1998
User Contributions:
Comment about this article or add new information about this topic:
Supplier selection, monitoring practices, and firm performance
Article Abstract:
A study explored the influence of supplier selection/monitoring practices on the relationship between supplier strategies and the related performance dimensions of profitability, product quality, product development cycle time, and the percentage of long-term accepted suppliers. The analysis used data on supplier practices in the automotive and computer industries in four states. It was found that greater use of advanced selection and monitoring practices tend to boost profitability, product quality and supplier performance in firms using supplier partnership strategies, but had little effect on the performance of firms using arms-length transactions.
Publication Name: Journal of Accounting and Public Policy
Subject: Business
ISSN: 0278-4254
Year: 1999
User Contributions:
Comment about this article or add new information about this topic:
Assessing empirical research in managerial accounting: a value-based management perspective
Article Abstract:
A value-based management structure is used in a critical evaluation of empirical research in managerial accounting. It is suggested that there is a lack of integration between financial and managerial accounting research.
Publication Name: The Journal of Accounting and Economics
Subject: Business
ISSN: 0165-4101
Year: 2001
User Contributions:
Comment about this article or add new information about this topic:
- Abstracts: Measuring fund strategy and performance in changing economic conditions. The efficient use of conditioning information in portfolios
- Abstracts: CEO compensation: the role of individual performance evaluation. Financial accounting information and corporate governance
- Abstracts: An empirical assessment of the residual income valuation model. Accrual reliability, earnings persistence and stock prices