Practice Developments in Budgeting: An Overview and Research Perspective

Hansen, Stephen C.; Otley, David; Stede, Wim A. Van der

doi:10.2139/ssrn.410544

Cited by 140 publications

(251 citation statements)

References 97 publications

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“…For example, Tsui (2001) suggests that the provision of cost-related information is likely to complement budgetary participation by helping to make decisions and formulating budgets. More specifically, when ABC is integrated in the budgeting process, there can be more transparency (Hansen et al 2003). Waeytens and Bruggeman (1994) found that when ABC information is used in budgeting, the incentive of biasing information by subordinate managers decreases (Hansen et al 2003;Kaplan and Norton 2008).…”

Section: Budgetary Participation Abc and Budgetary Outcomesmentioning

confidence: 99%

“…More specifically, when ABC is integrated in the budgeting process, there can be more transparency (Hansen et al 2003). Waeytens and Bruggeman (1994) found that when ABC information is used in budgeting, the incentive of biasing information by subordinate managers decreases (Hansen et al 2003;Kaplan and Norton 2008). This suggests that, in a budgetary participation process, the use of ABC may benefit the effect of budgetary participation on budgetary slack and managerial performance.…”

Section: Budgetary Participation Abc and Budgetary Outcomesmentioning

confidence: 99%

“…Research attempting to link budget participation to budget slack also provides inconsistent results (Fisher et al 2000;Hansen et al 2003;Church et al 2012). While these inconsistent findings do imply that budgetary participation independently is not a sufficient condition to impact budgetary outcomes , previous attempts to examine the impact of different contingency variables (e.g., Shields and Young 1993, Gul et al 1995, Chong and Bateman 2000, Hartmann 2000, Lau and Lim 2002, Winata and Mia 2005, Agbejule and Saarikoski 2006Venkatesh and Blaskovich 2012) do not provide a satisfactory understanding of the mechanisms involved.…”

Section: Introductionmentioning

confidence: 99%

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Assessing the impact of budgetary participation on budgetary outcomes: the role of information technology for enhanced communication and activity-based costing

2014

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This paper addresses the long-standing question of how budgetary participation (BP) affects budgetary outcomes. Information technology for enhanced communication (ITEC) and activity-based costing (ABC) are taken into consideration as moderators that might affect the relationship between BP and budgetary outcomes in manufacturing firms. Based on moderated and polynomial regression analyses, the study's findings indicate that the main effects of BP, ITEC and ABC on budgetary outcomes are not significant, and that while ABC significantly moderates the relationship between budgetary participation and budgetary slack, ITEC does not moderate this relationship. Results also indicate that both ITEC and ABC significantly moderate the relationship between budgetary participation and managerial performance. These findings suggest that the effect of budgetary participation on budgetary outcomes can be contingent on ITEC and ABC although their impact varies with the nature of budgetary outcomes.

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Section: Budgetary Participation Abc and Budgetary Outcomesmentioning

confidence: 99%

Section: Budgetary Participation Abc and Budgetary Outcomesmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

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Assessing the impact of budgetary participation on budgetary outcomes: the role of information technology for enhanced communication and activity-based costing

2014

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“…To determine if participative budgeting is optimal for a given organization, these positive effects must be considered in combination with the dysfunctional effects of budgetary slack and other gaming behavior (Hartmann 2000). Some researchers have concluded that the gaming behavior associated with participative budgeting destroys its usefulness (Jensen 2001;Hansen et al 2003). A factor that is rarely considered, however, is the possibility that budgetary slack may motivate increased effort.…”

Section: Introductionmentioning

confidence: 99%

Public and Private Forms of Opportunism within the Organization: A Joint Examination of Budget and Effort Behavior

Schatzberg

Stevens

2008

Journal of Management Accounting Research

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ABSTRACT:We assert that some forms of opportunistic behavior within the organization are relatively transparent and, therefore, public in nature. Further, while organizations can tightly control such public opportunism, it may not be optimal for them to do so in the presence of private opportunism. To study how public and private forms of opportunism differ and interact, we jointly examine budget and effort behavior in a participative budgeting experiment. We group participants into producer / manager pairs and set the parameters such that the producer extracts the largest share of surplus from the manager by publicly setting the budget at zero and privately providing low effort. When the producer unilaterally sets the budget, the public opportunism of budgetary slack is higher and more affected by learning than the private opportunism of low effort. Giving the manager the power to reject the budget not only reduces budgetary slack by about 50 percent, but also generates reciprocity expectations and behavior. In particular, managers who allow more budgetary slack expect and receive higher effort from their producers on average. This reciprocity increases organizational performance by increasing the expected pay of the manager without decreasing the expected pay of the producer.

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“…In this context, Scapens (1994) has consistently discussed the gap between theory and practice in management accounting, and has maintained that uncertainty can be reduced by information. Hansen, Otley and Van der Stede (2003) have agreed that there is a gap between theory and practice. Despite the long-term interest, this important issue remains unresolved.…”

Section: Introductionmentioning

confidence: 99%

Management accounting profile of firms located in brazil: a field study

Frezatti

2005

BAR, Braz. Adm. Rev.

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Companies must have resources that provide competitive advantages and are important factors for success. There is a great variety of such resources-including information systems, concepts of participation, models, and organizational structures. These can be referred to as components of managerial practice. Each company can be characterized as having a unique configuration of tools that can be recognized as the company profile. This paper analyzes the conceptual adherence (i. e., the relationship between theory and practice) of the managerial accounting practices of medium-sized and large Brazilian companies. Statistical multivariate analysis has allowed for the identification of five clusters within the group of companies studied. The main conclusion for the sample is that conceptual adherence to tactical components is greater than to strategic components. In addition, it is apparent that the newer components have not been widely adopted in the sample, similar to other field studies in the UK and USA.

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Practice Developments in Budgeting: An Overview and Research Perspective

Cited by 140 publications

References 97 publications

Assessing the impact of budgetary participation on budgetary outcomes: the role of information technology for enhanced communication and activity-based costing

Assessing the impact of budgetary participation on budgetary outcomes: the role of information technology for enhanced communication and activity-based costing

Public and Private Forms of Opportunism within the Organization: A Joint Examination of Budget and Effort Behavior

Management accounting profile of firms located in brazil: a field study

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