Developing a model based on the relationship between the effectiveness of the budgeting system and the value-based performance evaluation indices in the Saderat Bank of Iran

Document Type : Research Paper


Department of Accounting, Kermanshah Branch, Islamic Azad University, Kermanshah, Iran.


According to financial management theories, there are different measures for assessing the financial performance of business units, and banks are not excluded from this rule. This research seeks to develop a model based on the relationship between the efficiency of the budgeting system and the indices of value-based performance assessment in Iran's Saderat Bank. A questionnaire was used for this purpose. The statistical population of this research is the employees of SADERAT BANK, Kermanshah Province, which is 490 people. The sample size was 216 people based on the random sampling method and with the help of the Kookran limited community formula. Then by statistical tests, using SPSS and AMOS software, information about respondents including 216 questionnaires completed by employees of SADERAT BANK of Kermanshah province revealed that the efficiency of the budgeting system and the indices of value-based performance assessment with correlation coefficient Positive and meaningful. Other research findings show a positive and significant relationship between the value-added of human resources, economic value-added, market value-added, cash value-added and economic value-added. According to the research results, proper management of the costs and capital employed could improve economic value added.


[1] B. Babakhani, Presenting a model for establishing operational budgeting system in the government of the Islamic Republic of Iran, 5th Int. Conf. Account. Manag. 2nd Conf. Entrepreneur. Open Innov., Tehran, Mehr Ishraq Conference, 2014.
[2] R. Daneshborbandari, Usefulness of financial statement items in budgeting audit time, 2nd Annual Conf. Econ. Manag. Account., Ahvaz, Shahid Chamran University- Khuzestan Industry, Mining and Trade Organization, 2017.
[3] A. Dastgir, Investigation of VAT in the field of sustainable income and reduction of municipal costs, Conf. Civil Engin. Archit. Urban Plan. Islamic World, Tabriz, University of Tabriz - Shahid Madani University of Azerbaijan - University of Applied Sciences, Tabriz Municipality, 2012.
[4] M. Desineh and A. Abniki, Comparison of new performance evaluation indices per share, before and after VAT law in manufacturing companies in Tehran Stock Exchange, 3rd Int. Conf. Manag. Res. Human. Georgia, Modger Management Research Institute, 2016.
[5] D. Jenter and F. Kanaan, CEO turnover and relative performance evaluation, J. Finance 70 (2015), no. 5, 2155– 2184.
[6] M. Kashanipour, M. Rahmani and M. Kazemi, Explaining the effect of capital structure dynamics, profitability and economic value added on EPS of companies listed on the Tehran Stock Exchange, J. Account. Audit. Res. 11 (2019), no. 41.
[7] K.Y. Kim, L. Atwater, P.C. Patel, J.W. Smither, Multisource feedback, human capital, and the financial performance of organizations, J. Appl. Psych. 101 (2016), no. 11, 1569.
[8] C. Krelling and M.G. Badami, Operational and financial performance of Delhi’s natural gas-fueled public bus transit fleet: A critical evaluation, Transport Policy 47 (2016), 178–188.
[9] S. Mahmoudi, N. Mansoori, R. Azizinejad and H. Karimzadegan, Evaluation of HSE performance indices in hospital evaluation methods in Iran, Fifth Conf. Health, Safety Envir. Field of HSE Citizenship in the Field of Hospitals and Medical Centers, Tehran, Islamic Azad University, Science and Research Branch, 2019.
[10] A. Markos, S. Khalili Esbouei and J. Antucheviciene, Applying fuzzy MCDM for financial performance evaluation of Iranian companies, Technol. Econ. Dev. Econ. 20 (2015), no. 2, 274–291.
[11] S. Mirzaei Asrami, M. Hosseinpour and A. Safa, Application of fuzzy logic in evaluating the performance of different mass transportation systems: Ordinary bus, express bus and metro with emphasis on travel time index, Nat. Conf. Basic Res. Civil Engin. Architec. Urban Plan., Tehran, Ouj Higher Education Institute, 2017.
[12] B. Qadirzadeh and M. Zinali, Establishment of performance-based budgeting system in Ardabil province rural water and wastewater company, The First Nat. Electronic Conf. Appl. Res. Approach. Humanities and Manag., 2013.
[13] V. Qasemi, Structural equation modeling in social research using Amos graphics, Sociologists Publications, 2010.
[14] A. Ramezani and A. Khosravi Sarshaki, Development of performance evaluation indices for cities in the field of urban services and quality of life, Conf. Manag. Behav. Sci., Tehran, Permanent Secret. Conf., 2018.
[15] M.R. Ramezanian, R. Ismailpour and F. Mokhtari, Leveling indices of hotel service performance evaluation to increase profitability using the ISM technique, New Res. Approach. Manag. Account. 2019 (2019), no. 11, 55–69.
[16] M. Rojoei, M. Ramezani, M. Hesari and M. Borbor Jafari, Designing performance evaluation indices using BSC and AHP methods in Mashhad social security organization, J. Soc. Welfare 17 (2017), no. 64, 131–158.
[17] A. Safarzad, H. Dide Khani and M. Rouhi, Identifying and prioritizing barriers to operational budgeting, Int. Conf. New Horizons Manag. Account. Econ. Entrepreneur.ship, Tehran, New Horizons Science and Technology Association, 2016.
[18] G. Salehi, A. Mahdipour, H. Mar’ashian and M. Seifourian, Identification and ranking of performance evaluation
indicators of football coaches in Khuzestan Province, Int. Conf. Appl. Res. Phys. Educ. Sports Sci. Championship, Tehran, Salehan University, 2017.
[19] S. Samadi Lergani and A. Tamri Nia, Investigating the relationship between Q Leninberg and Ross (LR) with economic indices for evaluating stock market performance, 11th Int. Conf. Account. Manag. 7th Conf. Entrepreneur. Open Innov., Tehran, Mehr Ishraq Conference, 2008.
[20] N. Sayari, R. Sari and S. Hammoudeh, The impact of value added components of GDP and FDI on economic freedom in Europe, Econ. Syst. 42 (2018), no. 2, 282–294.
Volume 14, Issue 4
April 2023
Pages 283-296
  • Receive Date: 20 December 2021
  • Revise Date: 23 January 2022
  • Accept Date: 03 February 2022
  • First Publish Date: 10 September 2022