Open AccessThe Importance of Qualitative Factors In Corporate Performance Appraisal: Implications For Managers
Author(s) -
Mark A. Covaleski,
Mark W. Dirsmith,
J. Edward Ketz
Publication year - 2011
Publication title -
journal of applied business research
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.149
H-Index - 22
eISSN - 2157-8834
pISSN - 0892-7626
DOI - 10.19030/jabr.v7i3.6220
Subject(s) - qualitative research , qualitative property , business , financial statement , quantitative analysis (chemistry) , qualitative analysis , accounting , statement (logic) , quantitative assessment , computer science , risk analysis (engineering) , sociology , political science , social science , chemistry , audit , chromatography , machine learning , law
The academic literature has tended to emphasize the formal assessment of organizational performance using largely quantitative criteria. In contrast, relatively little attention has been directed at understanding the role that qualitative information plays in the performance evaluations made by external constituents. The purpose of this paper is to fill this void by describing an empirical study of external decision makers that involved use of both quantitative and qualitative evidence. It is concluded that financial analysts and individual investors rely more heavily on such qualitative considerations as management interpretations and business environment information than on quantitative, financial statement based information for companies operating in dynamic and complex industries. A series of implications for corporate executives are explored.