Article2014

IMPACT OF ORGANISATIONAL FACTORS ON BUDGETARY SLACK

Rozita Amiruddin · Sofiah Md Auzair · Pusat Pengajian Perakaunan

19 citations0/0 files stored

No readable copy stored yet — this record is metadata only.

No open-access location is known for this record yet.

Literature note Cite in a project Citation map

Accounting and Organizational Management Auditing, Earnings Management, Governance Accounting Theory and Financial Reporting

Abstract

This study examines the impact of organisational factors on budgetary slack among managers in Malaysia. The organisational factors as identified in prior research are budget participation, budget emphasis, information asymmetry and power distance. Specifically, this paper focuses on the influence of these factors either individually or interactively on the occurrence of the budgetary slack. Data are collected using questionnaire from 83 managers randomly selected from companies listed in Bursa Saham excluding finance, warrant and loan sector. Factor analysis results show that there are two dimensions of power distance i.e. supervisor style and management style. Individual relationships were tested using multiple regression and interaction relationships used moderated regression. Multiple regression results indicate a negative and significant relationship between management style and budgetary slack. Moderated regression results show a significant positive relationship between two way interaction of budget participation and budget emphasis with budgetary slack, and three way interaction of budget participation, budget emphasis and information asymmetry with budgetary slack. As a whole, the results imply that high power distance (management style) decreases the budgetary slack, while high interaction of budget participation, budget emphasis, and information asymmetry increases the budgetary slack. These results indicate that management should choose the right combination of budget participation, budget emphasis, and information asymmetry, and management style to control budgetary slack. The findings of this study could assist management of companies to understand the important factors that influence budgetary slack, which in turn may lead to effective management.

Paper brief

Loading…

Cite this work

Citation unavailable for this work.

BibTeX RIS CSL-JSON

No public copy is stored for this record, so only the metadata is cited.

Citations in this library

Citation map →

Stored only when both papers are in the corpus — 19 citations exist upstream.

References

2002Culture's Consequences: Comparing Values, Behaviors, Institutions, and Organizations across Nations 1981Culture's Consequences: International Differences in Work-Related Values 1993Cultures and Organizations: Software of the Mind.1964Richard M. Cyert & James G. March, A Behavioral Theory of The Firm, Prentice-Hall, Inc., Englewood Cliffs, New Jersey, 1963, 332 s.1981On the Measurement of Organizational Slack 2017Management control systems 1972An Empirical Study of the Role of Accounting Data in Performance Evaluation 2000The relationship between two consequences of budgetary controls: budgetary slack creation and managerial short-term orientation

Explore the map →

Papers that cite the same references — the relational fallback while embeddings are still backfilling.

Imported from OpenAlex (CC0) — nothing here is generated.