Research Project Details

Accounting Drivers of the Balanced Scorecard on Firms’ Performance: A Panel Data Analysis on DSE and CSE based IT Firms

Project ID: WUB/2022/P1/006

Project Duration: 2022 - 2023

Project Leader: Helaluddin Ahmed (Department of Business)

Project Members: Md. Iftekharul Islam Bhuiya

Common methods to analyze firm’s performance include profitability analysis, growth analysis, and market value analysis. Traditional tool to analyze firm performance is the analysis of firms’ accounting figures, but for most stakeholders’, analyzing profitability, growth, and market value are not the only measure of firm performance as they usually ask for more information. Hence, applying accounting measures of Balanced Scorecard will provide more insightful analysis to the accounting information users like investors, managers, creditors and firm’s stakeholders. To increase ROIC, financial managers need to maximize ROR and Working Capital Turnover. Hence, ROR and Working Capital Turnover have direct influence on ROIC. This study aims to investigate the nature of the relationship among Return on Revenue, Working Capital Turnover and Return on Capital Investment of Bangladeshi Information and Communications Technology (ICT) companies. This study comprises a causal descriptive and associative approach that aim to determine the effect of two or more variables. The population in this study is the ICT sector companies listed on the DSE and CSE for the 2017-2021 period. The research will follow convenient sampling method. Panel data will be used in this research. Breusch-Pagan test and Correlated Random Effect-Hausman Test will be performed to test the model selection and panel least squares regression method will be employed to get research conclusions. This research will help all the accounting information users, whether they are internal or external, to adapt the balance scorecard process using the accounting data.  The key focus of this study to get an effective model that describe the balance scorecard by the various accounting drivers