Budget participation's influence on budget slack: the role of fairness perceptions, trust and goal commitment
2007 (English)In: Journal of Applied Management Accounting Research, ISSN 1443-9905, E-ISSN 1443-9913, Vol. 5, no 1, 39-58 p.Article in journal (Refereed) Published
This research uses structural equation modelling to investigate a comprehensive model of the relationships between budget participation, procedural fairness, distributive fairness, trust, goal commitment and managers' propensity to create slack.To this end, data from 163 U.S. individual managers were used for the study. The results show that budget participation impacts both procedural fairness and distributive fairness which, in turn, affect trust. Also, both procedural fairness and trust are found to have a significant impact on budget goal commitment which, in turn, negatively influences managers' propensity to create slack. Further analyses indicate that the direct relationship between budget participation and manager's propensity to create slack was insignificant, which suggests that fairness and goal commitment mediate the relationship between budget participation and manager's propensity to create slack. The applied implications of this study, especially in relation to individual reactions to being ‘laid-off', are also discussed.
Place, publisher, year, edition, pages
2007. Vol. 5, no 1, 39-58 p.
Research subject Accounting and Control
IdentifiersURN: urn:nbn:se:ltu:diva-11589Local ID: a9842400-a174-11dc-ac39-000ea68e967bOAI: oai:DiVA.org:ltu-11589DiVA: diva2:984539
Godkänd; 2007; 20071203 (keni)2016-09-292016-09-29Bibliographically approved