Are subjective business performance measures justified
Purpose The purpose of this paper is to operationalize the subjective measures of business performance and assessing their justification for use in place of objective measures of business performance. Design/methodology/approach The study is based on a sample survey of 171 companies listed on Bombay Stock Exchange, India. A cross sectional descriptive research design has been used. Exploratory factor analysis was used to assess the factor structure and dimensionality of objective and subjective measures of business performance. The psychometric properties of these measures and their interrelationship have been assessed through confirmatory factor analysis. Findings The study finds a strong positive correlation between subjective business performance and objective business performance. The study finds it justified to use the subjective measures of business performance. Research limitations/implications Response bias may have crept in because of self reported measure used for the study. Future resea.