Performance measurement systems design choice: the roles of political connections and social networking on firm performance - evidence from China

Vincent K. Chong, Gary S. Monroe, Isabel Z. Wang, Feida Frank Zhang

Research output: Chapter in Book/Conference paperChapterpeer-review

1 Citation (Scopus)

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.
Original languageEnglish
Title of host publicationAdvances in Accounting Behavioral Research
EditorsKhondkar E. Karim
PublisherEmerald Group Publishing Limited
Pages43-77
Number of pages35
ISBN (Electronic)9781804557983, 9781804558003
ISBN (Print)9781804557990
DOIs
Publication statusPublished - 13 Mar 2023

Publication series

NameAdvances in Accounting Behavioral Research
Volume26
ISSN (Print)1475-1488

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