1- Research problem and questions:
The Researcher adopted in measuring the balanced performance on the completion of the conclusion of the accounting literature, either by adding new dimensions or integrating the balanced score card dimensions with other measures in order to improve the strategic performance of the facility and to measure the level of transparency of the published financial reports.
Based on the above, the research raises the following questions about the importance of developing the balanced score card as a modern approach to measure transparency of the published financial reports:
1. What is the extent of the discrepancy between the Egyptian businesses to disclose indicators of the balanced score card to achieve transparency in financial reporting?
2. Is the balanced score card philosophy an appropriate approach to measure transparency in the published financial reports of the Egyptian businesses?
3. Does the disclosure of the balanced scorecard indicators have a positive impact on the level of transparency of the published financial reports?
4. Can we perform an applied study to measure the level of transparency in the Egyptian businesses through the indicators derived from the balanced scorecard?
The answer to these questions is the essence of the research problem that the researcher is trying to study and analyze to draw conclusions and to stand on some of the recommendations that may be utilized in the applied field.
2- Research Objectives:
The main objective of the research is an attempt to develop the balanced scorecard so as to be used as an approach to measure the level of transparency of the published financial reports for the Egyptian businesses.
To achieve this main objective it's necessary to achieve the following objectives:
1. Identify the extent of the discrepancy between the Egyptian businesses in disclosing the balanced scorecard indicators to achieve transparency in the published financial reports.
2. Identify the balanced scorecard philosophy and its approbriatness as a measure of transparency in the published financial reports.
3. Identify the impact of the disclosure of the balanced scorecard indicators on the level of transparency of the published financial reports of the Egyptian busineses.
4. Test the acceptability of the practical environment for the proposed approach of developing the balanced score card through a poll sample search on the extent of their acceptance of the steps and procedures within this approach.
3- The Research importance:
The academic importance of thearise through the study of the appropriatness of the balanced scorecard philosophy to measure the transparency of the published financial reports of the Egyptian businesses, the study of the role of corporate governance in the development of the balanced scorecard and its impact on the level of transparency in published financial reports. In addition to studying the impact of integration between the balanced scorecard and the feedback to achieve the strategic goals of the businesses and the level of transparency of their published financial reports.
The practical importance arises from clarifying the discrepancy between the Egyptian businesses from the disclosureof the balanced scorecard indicators, as well as clarifying the impact of the disclosure of the balanced scorecard indicators on transparency of the financial reports published by the Egyptian businesses.
4- The Reseach hypotheses:
a) There are differences between the Egyptian businesses in the disclosure of the balanced measurement of performance indicators to achieve transparency in the financial reports published.
b) The philosophy of the balanced score card is considered an appropriate measure to achieve transparency in the financial reports published facilities Egyptian business.
c) The disclosure about the Balanced score card indicators have a positive impact on the level of transparency in the published financial reports.
d) The proposed approach for the development of the balanced score card is appropriate for application and effects the level of transparency in the published financial reports.
5- The Research Methodology:
Researcher relied on both inductive and deductive approach together to identify the previous studies and literature related to the development of the balanced scorecard, and the measure of transparency in the published financial reports, in order to reach logical conclusions that may help to achieve the goal of thevresearch and to propose an integrated approach to develop the balanced scorecard to measure the transparency in the Egyptian businessesusing both the theoretical office study as well as the Applied studytechniques, which relied on a combinationthe integration between quantitative study quantitative Study and a qualitative field study in order to strengthen the research resultsand to overcome the problem of shortage and lack of flow of information in the Egyptian environment.
First, measure the discrepancy between the Egyptian businesses to disclose the balanced scorecard indicators of performance to achieve transparency in the published financial reports:
The Content analysis method was used to measure the discrepancy between the Egyptian businesses in the disclosure of the balanced scorecard indicators of performance to achieve transparency in the published financial reports by developingan index for transparency through a balanced perspective depending on the performance indicators that were used by some other studies, this index was examined on a sample of annual reports of a group of Egyptian companies that are listed in the stock exchange marketin various economic sectors.
Second: the field study:
Based on a design of a questionnaire sent to a sample of senior management and middle managers of listed , Specialized university staff, users of financial (financial analysts, investors) to measure their attitudes toward the elements of the proposed approach for the development of a balanced scorecard, and the role of each of the Corporate Governance and reference measurement in this development.
6- The Reseach plan:
The Research is divided as follows, Section I: the general framework of the research, while Section II: extrapolate and evaluate previous studies, while Section III: the nature of the relationship between the balanced scorecard for performance and transparency in the published financial reports Section IV: The proposed approachfor the development of the balanced scorecard for performance measurement ot transparency in the financial reports, section V: shows theresults analaysis of the applied study and the test of the hypotheses, and while section VI: the findings and recommendations and areas for future research.
7- Findings and recommendations and proposals for future
7.1 Results:
1. The change in the nature of the strategic role of the balanced score card for performance, its concept evoluted from just an internalsystem to measure and manage strategic performance to an external system to achieve transparency in the published financial reports, providing information on all aspects of the performance of the enterprise, and to shed light on unsafe behaviors as well as striking a balance between the needs of some of the stakeholders in the businesses.
2. The growing importance of the trend to disclose the indicators of the balanced score card for performance to measure transparency in the published financial reports, especially after the successive collapses of a number of global businesses, insufficient financial data provided by traditional financial statements, and the increase of the degree of uncertainty associated with the development of the modern business environment.
3. The existence of challenges the may encounter using the balanced scorecard as a measure of transparency in the published financial reports, and these challenges maybe due to the growing pressure from the some departments managers to not to disclose the indicators of the balanced scorecard for performance as they may show deficiencies in their performance, the increase of indicators associated with the different dimensions of the balanced score card for performance, as well as the difficulty of measuring and evaluating some aspects of non-financial performance.
4. Transparency of balanced perspective of performance depends on the disclosure of balanced performance measurements and what they contains from financial and non-financial information in the light of their relative importance for the users of financial reports, , with the need for completeness and the benefit of this information to reflect the needs of these users.
5. the achievement of transparency in financial reporting needs a measure for the performance of businesses, and apply the standards of International Financial Reporting, raising awareness of the importance of transparency, the activation of the principles and mechanisms of corporate governance and the use of electronic disclosure in the publication of financial reports with the need to meet the needs of users in the light of the cost determinants and transparencyrisks.
6. The additionof the online performance measure, transparency, and ongoing monitoring to the measurements of the performance in the balanced mesures achieve efficiency and effectiveness in measuring, evaluating and managing performance, and helps to achieve the strategic objectives of the facility, and to provide information to meet the needs of users of the published financial reports.
7. There are differences between the Egyptian businesses in the disclosure of the indicators of the balanced measures of performance to achieve transparency in publishedfinancial reports (which validates the first hypothesis)
8. The philosophy of balanced performance measurementsan appropriate scale to achieve transparency in the published financial reports (which validates the second hypothesis).
9. Disclosure of the balanced measurements for performance indicators have a positive impact on the level of transparency in the published financial reports (which validates the third hypothesis)
10. The proposed approach to the developmentof a measurement of balanced performance is appropriate for application and has an impact on the level of transparency in the published financial report (which validates the fourth hypothesis).
7/2 Recommendations:
In light of the findings of the research results, the following is recommended:
1. The GASCM to compel businesses to prepare the list of indicators for measuring balanced performance as a condition list their shares in the Egyptian stock market and the disclosure of this list within the published financial statements at the end of the fiscal year.
2. The bodies and professional organizations responsible for issuing accounting standards to issue an accounting standard that includes accounting aspects related to performance evaluation in terms of identifying performance indicators that are disclosed, and the method of disclosure, and determine the scope of which businesses are bound to apply it.
3. Compel the Egyptian businesses to establish a separate department within the organizational structure, which follows the audit committee so that its mission is to assess the various aspects of property management performance in light of reference measurements, which provides objective indicators and a high degree of credibility to the users of the published financial reports.
4. The use of the proposed approach of the researcher to develop a balanced performance measurement, where a minimum of requirements and detailed steps that must be to help in developing the balancedmeasurement of the performance and to provide indicators to meet the needs of users of financial reports and enable the measurement of transparency.
5. Raising the awareness of published financial reports users to rhe importance of studyingthe indicators of the balanced measurements of performance and to analyze the content of the information to guide them in making their decisions because of their role in giving a true picture of the performance of the facility, and what it may face of future financial crises.
6. The auditor's to review performance indicators and the allocation of a paragraph in the report, and to express his opinion in them to give them confidence and credibility.
7/3 Future Proposals:
In light of the findings of the research results, the researcher considers that there are many areas that form the basis for future researchs, including the following:
1. A comparative study between Egypt and different environments regarding the impact of the disclosure of balanced measurement indicators on decisions of financial reportsusers, especially with an environment with a high level of transparency and information technology such as the United States, and England.
2. The performance of the e-disclosure as an input to improve the level of transparency in the published financial reports in the light of information technology governance evaluation.
3. Study the impact of the integration of balanced scorecard performance measurement (BSC) methodology and Six Sigma (LSS) to improve the performance of the Egyptian business facilities.
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