Wednesday, April 30, 2014 | 2:00pm - 3:30pm | Room 337, HSBC Business School Building

Abstract

This study investigates the role that visual attention plays in the managerial judgments made in Balanced Scorecard performance evaluations. Using the Locarna eye tracker to collect data on the amount of time superiors spend fixated on visual cues, we hypothesize and find that superiors focus their attention more on strategically-linked performance measures than on the strategically non-linked measures when they evaluate their subordinates. Furthermore, we predict and find that superiors who pay more attention to strategically linked performance measures are more likely to make decisions that are consistent with the achievement of their subordinates’ strategic objectives. This study contributes to the accounting literature by generating important insights into the influence of visual attention on judgments and decision-making processes.