arbiter
JournalsAccount

Performance Measurement Systems Design Choice: The Roles of Political Connections and Social Networking on Firm Performance – Evidence From China

Vincent K. Chong et al.

Advances in Accounting Behavioral Research2023https://doi.org/10.1108/s1475-148820230000026003book-chapter
AJG 2ABDC A
Weight
0.73

Abstract

This study examines the effect of employees' perceptions of political connections on performance measurement systems (PMS) design choice and firm performance. In addition, this study explores the moderating effect of social networking, a very common and widely used factor by domestic and foreign multinational firms operating in China, and its joint effect with political connections or PMS design choice on firm performance. We collected survey responses from a sample of 110 managers from manufacturing firms in China. Our results reveal that highly politically connected managers use nonfinancial measures, leading to improved firm performance. Our results suggest that social networking interacts significantly with political connections, and nonfinancial and financial measures on firm performance. The theoretical and practical implications of our findings are discussed.

3 citations

Open via your library →

Cite this paper

https://doi.org/https://doi.org/10.1108/s1475-148820230000026003

Or copy a formatted citation

@article{vincent2023,
  title        = {{Performance Measurement Systems Design Choice: The Roles of Political Connections and Social Networking on Firm Performance – Evidence From China}},
  author       = {Vincent K. Chong et al.},
  journal      = {Advances in Accounting Behavioral Research},
  year         = {2023},
  doi          = {https://doi.org/https://doi.org/10.1108/s1475-148820230000026003},
}

Paste directly into BibTeX, Zotero, or your reference manager.

Flag this paper

Performance Measurement Systems Design Choice: The Roles of Political Connections and Social Networking on Firm Performance – Evidence From China

Flags are reviewed by the Arbiter methodology team within 5 business days.

Evidence weight

0.73

Balanced mode · F 0.40 / M 0.15 / V 0.05 / R 0.40

F · citation impact0.96 × 0.4 = 0.38
M · momentum0.80 × 0.15 = 0.12
V · venue signal0.50 × 0.05 = 0.03
R · text relevance †0.50 × 0.4 = 0.20

† Text relevance is estimated at 0.50 on the detail page — for your query’s actual relevance score, open this paper from a search result.