This paper proposes and tests a model to explain the cause-and-effect relationships
among the four perspectives of the Balanced Scorecard: learning and growth, internal business
processes, customer and financial. Drawing from the management, MIS and accounting
literatures, the model proposes that the financial dimension is directly affected by continuous
improvements in all of the other three perspectives. Using stepwise regression, we found
preliminary empirical support for the model based on publicly available data for 332 companies
included in the American Institute of Certified Public Accountants Performance Measurement
Survey.