Preprint Article Version 1 This version is not peer-reviewed

Aspects of Sustainable Management Control for Company Efficiency

Version 1 : Received: 24 July 2018 / Approved: 24 July 2018 / Online: 24 July 2018 (09:31:34 CEST)

How to cite: Bostan, I.; Barca, A.; Tabara, N.; Muntean Jemna, L. Aspects of Sustainable Management Control for Company Efficiency. Preprints 2018, 2018070451 (doi: 10.20944/preprints201807.0451.v1). Bostan, I.; Barca, A.; Tabara, N.; Muntean Jemna, L. Aspects of Sustainable Management Control for Company Efficiency. Preprints 2018, 2018070451 (doi: 10.20944/preprints201807.0451.v1).

Abstract

In this article, management control has been studied from the perspective of intention towards sustainable development of companies. The main idea focuses on the analysis of relations between sustainable management control and the system of performance appraisal using as a reference the resource-based theory. These relations have been assessed both theoretically by reviewing literature in the field, and empirically based on data collected in a questionnaire from top management, as well as data from Annual Reports from the main segment of Bucharest Stock Exchange. The authors have shown that financial performance has a significant influence on management control, and the return on capital employed is one of the most recommended indicators. The sustainable nature attributed to management control is the result of institutional theory evolution, provisions of Directive 2014/95/EU and Guide of Global Management Accounting Principles (2015) using stewardship. Consequently, profits are not the main element any more in the assessment of financial „health” of a company. To ensure the sustainable success, sustainable balanced scorecard is one of real measures for managing financial and non-financial performance.

Subject Areas

sustainable management control; performance evaluation system; resource-based theory; sustainable balanced scorecard.

Comments (0)

We encourage comments and feedback from a broad range of readers. See criteria for comments and our diversity statement.

Leave a public comment
Send a private comment to the author(s)
Views 0
Downloads 0
Comments 0
Metrics 0


×
Alerts
Notify me about updates to this article or when a peer-reviewed version is published.