Participative budgeting: the effects of budget emphasis, information asymmetry and procedural justice on slack - additional evidence / Vincent K Chong and Raymon Strauss

K Chong, Vincent and Strauss, Raymon (2017) Participative budgeting: the effects of budget emphasis, information asymmetry and procedural justice on slack - additional evidence / Vincent K Chong and Raymon Strauss. Asia-Pacific Management Accounting Journal (APMAJ), 12 (1). pp. 181-220. ISSN 2550-1631

Abstract

This study re-examines the results presented in Lau and Eggleton (Accounting and Business Research, 2003, pp. 91-104) regarding the influence of information asymmetry and budget emphasis on the relationship between budgetary participation and budgetary slack hold based on a different sample. In addition, this study extends Lau and Eggleton’s research model by incorporating procedural justice as an additional moderating variable. A survey research methodology was used to collect data. Participants consisted of 116 managers from Australian manufacturing firms listed in the Who's Who in Business in Australia database. The results indicate that subordinates’ propensity to create budgetary slack is low when budgetary participation, information asymmetry and budget emphasis are all high. In addition, the results reveal that in high budget emphasis and high information asymmetry situations, subordinates’ propensity to create budgetary slack is low when budgetary participation and procedural justice are high. This study contributes to the existing knowledge by generating both theoretical and practical implications to improve budgetary control systems within organizations.

Metadata

Item Type: Article
Creators:
CreatorsID Num. / Email
K Chong, VincentUNSPECIFIED
Strauss, RaymonUNSPECIFIED
Subjects: H Social Sciences > HG Finance > Financial management. Business finance. Corporation finance
Divisions: Universiti Teknologi MARA, Shah Alam > Accounting Research Institute (ARI)
Journal or Publication Title: Asia-Pacific Management Accounting Journal (APMAJ)
Journal: UiTM Journal > Asia-Pacific Management Accounting Journal (APMAJ)
ISSN: 2550-1631
Volume: 12
Number: 1
Page Range: pp. 181-220
Item ID: 29944
Uncontrolled Keywords: Participative budgeting, Information asymmetry, Procedural justice
URI: http://ir.uitm.edu.my/id/eprint/29944

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