The relationship between the role of controlling and corporate performance

Abstract

The financial crisis and the constantly increasing environmental uncertainty has changed the regular controlling practices of corporations. More and broaderbased information is required by management and stricter cost control has been implemented at many organizations. Both practitioners and academics claim that controlling, as a decision supporting tool has gained more managerial attention. This paper analyzes the organizational role played by the controlling function and investigates the connection between the role of controlling and corporate performance. The study is based on the survey of the Competitiveness Research Centre at the Corvinus University of Budapest that was conducted in summer 2013. The paper argues that while the business-oriented role of controlling is apparent at Hungarian enterprises, this is only the characteristics of the minority. It shows that companies with business-oriented controlling do perform better, however this relationship is weak.