Sarcouncil Journal of Economics and Business Management

Abstract: This study investigates the ability of balanced scorecard (BSC) to create shareholder value among publicly listed firms in Egypt, an emerging economy with a dynamic business environment. The BSC framework, encompassing financial, customer, internal processes, and learning and growth perspectives, provides a multi-dimensional approach to performance measurement and strategic alignment. The study utilizing data from Egyptian non-financial firms listed on the EGX30 Index without real estate sector from 2011 to 2020, employs a fixed-effects model to evaluate the correlation between BSC dimensions and changes in market value, which serves as a proxy for shareholder value. The study uses a fixed-effects model across for 13 firms for ten years, the results, which show that balanced performance across BSC dimensions accounts for approximately 57% of the variation in shareholder value, as indicated by the high within R-squared value. This study provides empirical evidence that the BSC is an effective tool for enhancing shareholder value in emerging markets, advocating for its broader adoption among Egyptian firms to achieve sustainable growth and long-term investor satisfaction