An International Meeting of the American Accounting Association American Accounting Association 2006 Annual Meeting August 6–9, 2006 Washington, D.C.

Gerald K. Debusk
Appalachian State University

Larry N. Killough
Virginia Polytechnic Institute and State University

Robert M. Brown
Virginia Polytechnic Institute And State University

Abstract: Modern performance measurement systems like the Balanced Scorecard utilize traditional financial measures in conjunction with several nonfinancial measures. We surveyed experienced executives in order to examine the relationship of personality to usage of information contained in these modern performance measurement systems. Results suggest cognitive characteristics of executives, specifically an executive’s intolerance of ambiguity (IOA), can affect perceived importance of performance measurement information and confidence in the evaluation of business-unit performance. Previous research has produced mixed results, perhaps due to the multidimensional nature of existing IOA scales. This paper departs from prior research by developing and utilizing a unidimensional measure for IOA. We also provide evidence that the IOA – dependent variable relationship is not necessarily linear.

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