Abstract
The purpose of this research is to estimate how performance measures (financial and nonfinancial) are used in Japanese firms. A questionnaire survey was mail-administered with 3,245 decentralized units listed on the First Section of the Tokyo Stock Exchange and data has been collected from 307 units. In financial performance measures, sales volume, operating profit and ordinary profit are reported mainly from business units to the group head office. In nonfinancial performance measures, any measures (besides measures about quality) which are reported to the group head office are equal to or less than majority. In most Japanese firms, they use performance measures as a interactive control system (by Simons), and they review goals and plans in the middle of period if necessary.
