BALANCED SCORECARD IN MANAGEMENT ACCOUNTING AND ITS APPLICATION TO INSURANCE COMPANIES IN TURKEY

Year 2017, Volume: 4 Issue: 3, 215 - 223, 30.09.2017

Ilhan Ege , Zeynep Sener

https://doi.org/10.17261/Pressacademia.2017.689

Abstract

Purpose -   This paper examines the insurance companies’ (in Turkey) opinions
regarding balanced scorecards and techniques they used to measure performance.    

Methodology -   A questionnaire form primary was sent to the Association
of the Insurance and Reinsurance Companies in Turkey to identify sub-criteria
to be used four perspectives of balanced scorecard. 41 experts responded to the
questionnaire. In accordance with the data, another questionnaire was prepared
to determine performance measurement, perspectives, criteria and balanced
scorecard. Then the second questionnaire was sent to 43 companies (excluding
pension companies because of different criteria). 30 companies responded to the
questionnaire. The data about opinion of performance measurement and balanced
scorecard were analyzed by using SPSS. However, the data about performance
criteria, perspectives were analyzed by Analytical Hierarchy Process. For this
analyze, we used the geometric mean of 30 companies.

Findings-  Findings indicate that insurance companies (66.7%) prefer balanced scorecard
as a tool for performance measurement. It is observed that customer and financial perspectives were found to be the most highlighted perspectives
than other ones, internal business processes and learning-growth perspectives, among performance perspectives utilized.
Besides, two insurance companies use ‘competence perspective’ in addition to
the four perspectives in their balanced scorecard.

Conclusion- Insurance companies can make use of these criteria to
improve their performance and work more effectively by elaborating the criteria
which reduce their performance. In this way, as they improve their performance,
they can contribute to the economy, especially the finance sector.

Keywords

Firm performance, management accounting, balanced scorecard, AHP, insurance companies

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