Does the Level of Religiosity Determine Budgetary Slacks Behavior  as the Result of Superrior Pressure

Prayudi, Made Aristia; Dharmawan, Nyoman Ari Surya

doi:10.33005/ebgc.v1i2.21

Cited by 4 publications

(9 citation statements)

References 25 publications

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“…Research by McGuire et al (2011) also showed that managers who are more religious will choose to report the real income from management activities rather than manipulate the financial statements. Prayudi and Dharmawan (2018) confirmed that religiosity affects individuals when creating budgetary slack. Individuals who have a low level of religiosity are proven to create more budgetary slack than individuals who have a higher level of religiosity.…”

Section: Introductionmentioning

confidence: 68%

Obedience Pressure vs. Peer Pressure: An Explanation of Muslims’ Religious Role in Budgetary Slack

Br¹,

Khoirunisa²

2021

JIEB

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Introduction/Main Objectives: The performance of individuals in organizations is generally evaluated based on their success at achieving targets. Furthermore, the role of the budget has a major effect on individual behavior in the preparation of the budget, by allowing unethical actions (budgetary slack). Background Problems: There are a few studies that measure the difference in the influence of social pressure between superiors and peers on individual’s behavior in the organizational budgeting process. On the other hand, there are inconsistencies in the results of the research into the role of religiosity in the creation of budgetary slack. Novelty: To explain why people are not influenced by social pressures to create budgetary slack, we use the Psychological Reactance Theory. We argue that religiosity is one factor that influences people in making decisions about participative budgeting. Religiosity is believed to be able to influence one's personal values, so it impacts on one's judgment and determination of whether a thing is good or bad. Research Methods: This study uses an experimental research method on 65 undergraduate accounting students and a 2x2 factorial design consisting of two factors, social pressure (obedience pressure and peer pressure) and religiosity (high and low). Finding/Results: The results show that religiosity is proven to play an important role in the budget decision-making process, futhermore it minimizes the occurrence of budgetary slack. Conclusion: Individuals who have high religiosity are proven to be better able to avoid creating budgetary slack compared to individuals who have low religiosity, when receiving pressure from superiors and peers. This result has implications for organizational stakeholders dealing with employee recruitment or in the organization's management control system, as religiosity is an important factor that must be prioritized.

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Section: Introductionmentioning

confidence: 68%

Obedience Pressure vs. Peer Pressure: An Explanation of Muslims’ Religious Role in Budgetary Slack

Br¹,

Khoirunisa²

2021

JIEB

View full text Add to dashboard Cite

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“…Individuals' intentions to engage in Budgetary Slack are influenced by a person's level of religiosity, as confirmed by Prayudi and Dharmawan (2018). It has been established that people with lower levels of religiosity are more likely to generate budgetary slack than their more religious counterparts.…”

Section: Religiosity On Budgetary Slackmentioning

confidence: 83%

“…Moreover, managers with a religious worldview will be forthright in their presentation of financial data. It has been established that managers with low religiosity tend to be lax with their budgets (Prayudi and Dharmawan, 2018).…”

Section: Resultsmentioning

confidence: 99%

“…McGuire et al (2011) find that religious managers are more likely to report legitimate management income rather than fiddle with the books. Slack in one's budget can be attributed to one's religiosity, as confirmed by Prayudi & Dharmawan (2018). It has been empirically demonstrated that people with lower levels of religiosity generate more fiscal wiggle room than those with higher levels of religiosity.…”

Section: Introductionmentioning

confidence: 84%

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Does Religiosity Matter? Experimental Research on Abusive Supervision in Budgetary Slack Creation

Agustina

Amelia

2022

IJAR

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Abusive supervision behavior has long been a problem in the budgeting process. Its nature has been proven to damage individuals and significantly impact the corporate environment. Several studies related to Abusive supervision show evidence that individuals who experience abusive supervision tend to do Budgetary Slack. Meanwhile, religiosity, which is predicted as a personal value that can control individuals from committing acts outside the norm or harming the company, sometimes has little effect. Several studies have shown that high religiosity does not prevent individuals from taking despicable actions such as earnings management, Budgetary Slack, commitment escalation, and others. Is there anything wrong with religiosity as an individual's value? Does this occur due to variable measurement error (instrument) or method bias in sampling? Researchers tried to compare various instruments related to religiosity to obtain the most appropriate measurement, especially by photographing this phenomenon. We surveyed 83 participants using the experimental method with a 2x2 factorial design to understand how religious belief might buffer against the destructive effects of abusive supervision on budgetary slack. The results of this study are expected to be a reference (empirical evidence) related to the role of religiosity as a personal value in preventing destructive behavior of individuals, especially in the budgeting process.

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“…Prior research in accounting documented positive association between religiosity and ethical behaviour of accountants and/or auditors. It was reported that the level of religiosity has a negative association with financial reporting quality that is measured using earnings management (Cai et al , 2020; Montenegro, 2017) and reduce budgetary slacks behaviour among accountants (Prayudi and Dharmawan, 2018). Additionally, the research also showed a negative association between the level of religiosity and reduced audit quality behaviour among external auditors (Sulistiyo and Ghozali, 2017).…”

Section: Literature Reviewmentioning

confidence: 99%

Technology readiness and data analytics competencies of the Muslim and non-Muslim external auditors: a comparative analysis

Jaffar

Ahmad

Sulaiman

2022

JIABR

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Purpose The purpose of this study was to investigate the level of technology readiness (TR) of the Muslim and non-Muslim external auditors and its effect on their data analytics competencies (DACs). Literature is insufficient in addressing the comparative analysis of these constructs among these auditing professionals. Design/methodology/approach A survey was conducted on 201 external auditors. Questionnaire was developed based on TR and DAC literature. Pilot testing was conducted on 50 respondents, who were drawn from the sample. Findings Non-Muslim external auditors were found to be more technology ready than Muslim external auditors. The optimum dimension of TR was significantly different between Muslim and non-Muslim external auditors. Significant mean difference was found only for personal capabilities dimension of DAC between Muslim and non-Muslim external auditors. TR had a significant effect on Muslim external auditors’ personal capabilities dimension of DAC; however, there was insignificant effect on all DAC dimensions for non-Muslim external auditors. The highest DAC score of the external auditors were only at the beginner level for technical skills and technologies and tools expertise dimensions. Research limitations/implications Using students as proxies for external auditors could lead to concerns with generalisability. Nonetheless, these students were competent to act as proxies as they had completed a six-month internship at an accounting firm. Practical implications The findings manifested the need for Muslim external auditors to be more technology ready. External auditors need to enhance their DAC to meet digital economic needs. Originality/value This study advocated the importance for auditing professionals to acknowledge the new data analytics challenges.

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Does the Level of Religiosity Determine Budgetary Slacks Behavior as the Result of Superrior Pressure

Cited by 4 publications

References 25 publications

Obedience Pressure vs. Peer Pressure: An Explanation of Muslims’ Religious Role in Budgetary Slack

Obedience Pressure vs. Peer Pressure: An Explanation of Muslims’ Religious Role in Budgetary Slack

Does Religiosity Matter? Experimental Research on Abusive Supervision in Budgetary Slack Creation

Technology readiness and data analytics competencies of the Muslim and non-Muslim external auditors: a comparative analysis

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