The Effect of Leader Reward and Punishment Behaviors on Subordinates’ Budget Reports

Chen, Mien-Ling

doi:10.1080/0013791x.2011.650839

Cited by 9 publications

(6 citation statements)

References 12 publications

Supporting

Mentioning

Contrasting

Unclassified

Order By: Relevance

“…In addition, the effects of budget slack tend to perpetuate as historical budgets often are used as a basis for future planning. Research has identified certain potential antecedents, such as level of budget participation/shared information (Church, (Chen, 2012;Leavins, Omer, & Vilutis, 1995). The results of this research, however, offer no conclusive answers.…”

Section: Introductionmentioning

confidence: 63%

The Effect Of Employee Ethical Ideology On Organizational Budget Slack: An Empirical Examination And Practical Discussion

Harvey¹

2015

JBER

View full text Add to dashboard Cite

Budget slack costs institutions money because there is a misallocation of assets. Therefore, organizations have a vested interest in hiring managers who do not have a propensity toward creating slack. Budget slack results when managers intentionally include more organizational resources in the budget than they anticipate needing (or when they understate revenue-producing activities). Extensive time and effort is invested into a company's budgeting process. The budget is often the primary point of financial control over the distribution of organizational resources (i.e., time, money, and materials). Prior research in business ethics has attempted to explain and predict when a manager will engage in this behavior, examining antecedents such as budget participation, cultural differences, and reward systems. The current paper expands on previous studies and examines the influence of individual ethical factors. Specifically, the influence of an individuals ethical ideology is examined in relationship to their propensity to create budget slack.

show abstract

Section: Introductionmentioning

confidence: 63%

The Effect Of Employee Ethical Ideology On Organizational Budget Slack: An Empirical Examination And Practical Discussion

Harvey¹

2015

JBER

View full text Add to dashboard Cite

show abstract

“…We administered two manipulations, intended to test reactions to controls, based on our measures, and to operationalize the distinction between rewarding honesty and punishing dishonesty from prior research (Chen 2012;Chen et al 2017;Christ et al 2012;Salterio and Webb 2006). 22 In Reward, we devised a way to potentially reward honest reporting, whereas in Punish, we devised a way to potentially punish misreporting.…”

Section: Methodsmentioning

confidence: 99%

Why Are People Honest? Internal and External Motivations to Report Honestly

Murphy

Wynes

Hahn

et al. 2020

Contemporary Accting Res

View full text Add to dashboard Cite

We create and validate measures capturing internal and external motivations to report honestly as trait‐like characteristics. Both measures have high levels of reliability, as well as convergent and divergent validity. To test their predictive validity, we conduct two experiments. In the first experiment, MTurk participants have the opportunity and incentive to misreport with no immediate consequences, and in the second experiment, participants with management experience report how they would make a hypothetical accounting allocation decision. In both experiments, we find that participants who are higher in internal motivations to report honestly are more likely to report honestly than those lower in internal motivations, confirming this measure's predictive validity. Both experiments also provide limited support for the predictive validity of our external measure, finding that those who are higher in external motivation do not report differently than those who are lower in external motivations in the absence of controls. Our study also reveals that individuals who are higher in internal motivations have a diminished reaction to different management controls: MTurk participants to a control that punishes misreporting, and manager participants to a control that rewards honest reporting. Results suggest that management and those charged with governance should consider that some employees can react negatively to controls that are perceived as constraining. Our measures are useful to researchers who investigate honest reporting by allowing them to identify, ex ante, individuals who want to be honest versus wanting to appear honest.

show abstract

“…Pengendalian formal untuk mengurangi adanya senjangan anggaran ditunjukkan oleh penelitian Chen (2012), Chong dan Ferdiansah (2012), serta Yuen (2004). Chen (2012) dan Yuen (2004) menemukan bahwa penghargaan dan huku-man memiliki peran dalam mengurangi potensi senjangan anggaran. Pengendalian formal umpan balik oleh atasan terhadap bawahannya terbukti efektif untuk mengurangi senjangan anggaran dibawah kondisi informasi privat (Chong dan Ferdiansah 2012).…”

Section: Latar Belakangunclassified

Pengaruh Kejujuran Rekan Dan Penghargaan Non Moneter Pada Senjangan Anggaran

Rahmawati

2019

JAKI

View full text Add to dashboard Cite

This study aims to examine the effect of peer honesty on the budgetary slack. This study focus on peer relations in the workplace as one of the factors that affecting budgetary slack.Non-monetary awards were also examined in their influence on the relationship. This is because many previous studies stated that non-monetary awards can strengthen or weaken performance. The data of this study were taken through independent variable manipulation experiments, namely peer honesty and non-monetary awards. This study used the experimental design 2 x 2 between subjects and ANOVA was used to analyze the data. The results of the study with 61 participants indicate that greater budgetary slack is due to the influence of dishonest colleagues than honest partners under conditions of information asymmetry. However, non-monetary awards do not affect the relationship between the two variables

show abstract

The Effect of Leader Reward and Punishment Behaviors on Subordinates’ Budget Reports

Cited by 9 publications

References 12 publications

The Effect Of Employee Ethical Ideology On Organizational Budget Slack: An Empirical Examination And Practical Discussion

The Effect Of Employee Ethical Ideology On Organizational Budget Slack: An Empirical Examination And Practical Discussion

Why Are People Honest? Internal and External Motivations to Report Honestly

Pengaruh Kejujuran Rekan Dan Penghargaan Non Moneter Pada Senjangan Anggaran

Contact Info

Product

Resources

About