Impact of Balance Scorecard Dimensions on Bank Performance: Evidence from Nepal

Abstract

The purpose of this study is to examine the status of BSC dimensions and their impact on bank performance. A formal questionnaire was used for collecting data. For evaluating responses, a five-point Likert-type scale has been used. A total of 1,080 questioners were distributed to the managers (including corporate and senior managers, officers, and junior managers) of the 27 banks with an average of 40 questionnaires per bank and a total of 562 (52.04 percent) available responses were obtained and evaluated in this research. Empirical tests and observations were used for descriptive statistics and the regression model. The findings show that the use of the BSC method is satisfactory in the Nepalese banking sector. Nepalese banks have improved relative performance on four of the BSC dimensions from the financial perspective. Also, the findings show a strong and significant impact of all four of the BSC dimensions considered in this study on the performance of the banks. This study indicates that a wider examination of corporate success is offered through the BSC approach. The Nepalese banking sector can use BSC to more comprehensively assess their organizational performance.

Keywords: Balanced scorecard, Commercial banks, Dimensions, Impact, Organizational performance, Status

DOI: 10.7176/RJFA/11-17-02

Publication date:October 31^st 2020