The relationship between budgetary evaluation, firm size and performance

Abstract

Purpose – The purpose of this paper is to present the main results of the first empirical study done in Morocco and attempts to highlight the impact of the firm size on the budgetary evaluation and its performance according to the firm size. Design/methodology/approach – Data were collected using a questionnaire sent to the Moroccan firms. A total of 62 questionnaires were correctly returned. The response rate was 15 per cent. Findings – In this research, we identified three principal styles of budgetary evaluation: “strict budgetary evaluation” adopted by 21 per cent of the sample; “moderate budgetary evaluation” adopted by 27.4 per cent of the surveyed enterprises; and “lower budgetary evaluation” adopted by 51.6 per cent of the sample. The first style is adopted especially by large firms. The firm’s performance is significantly and positively correlated with the budgetary evaluation in large enterprises. This correlation is not significant in SMEs. Practical implications – The findings of this research can help managers of companies in emerging economies in the choice of a better budgetary evaluation system. Originality/value – The outcomes of the study are relevant both to the literature on budgetary evaluation in particular and on management control in general, since they determine that the correct fit between budgetary evaluation and firm size causes a positive and significant change in the firm’s performance.

Health service in Brazilian private and public hospitals: Budgetary participation, feedback and performance from clinical managers perception

“…This ascertainment goes against Kenis (1979) results, in which the relationship between these variables was weak; but in the study developed by Elhamma (2015), the results corroborate the finding of hypothesis 3, in which the Budgetary evaluation presented a significant and positive relationship to explain performance. Regarding the statistical significance of the relationship between these constructs, the values presented are considered significant, supporting hypothesis 3.…”

Designing a Budgeting Model in Crisis Management: Case Study of Power Generation Plants

“…Following studies have been done under the effect of these two studies, which focused more on accounting based on performance, which includes reason of making the relationship between budget assessment style and behavioral factors affecting budget assessment. In this regard, (Chenhall, 2003) showed that six factors affect accounting base in designing management control systems: environment, technology, structure, size, strategy, and culture (Elhamma, 2015).…”

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“…Na análise temporal, Lyne (1992) foi o primeiro a pesquisar sobre a temática, examinou as percepções de diferentes grupos de usuários (contadores e gerentes) sobre o papel do orçamento, pressão orçamentária e participação orçamentária de acordo ao comportamento disfuncional. Percebe-se que cresceu o interesse dos pesquisadores sobre a AD nas práticas orçamentárias, tendo em vista que, entre 2014 e 2016, nove artigos foram encontrados com esse propósito, como os estudos de Kasdin (2017) que propôs um quadro analítico para avaliar orçamento e suas áreas ineficientes; o de Elhamma (2015) que analisou o impacto do tamanho da empresa na Fonte: Elaborada pelos autores.…”

“…Na análise temporal, Lyne (1992) foi o primeiro a pesquisar sobre a temática, examinou as percepções de diferentes grupos de usuários (contadores e gerentes) sobre o papel do orçamento, pressão orçamentária e participação orçamentária de acordo ao comportamento disfuncional. Percebe-se que cresceu o interesse dos pesquisadores sobre a AD nas práticas orçamentárias, tendo em vista que, entre 2014 e 2016, nove artigos foram encontrados com esse propósito, como os estudos de Kasdin (2017) que propôs um quadro analítico para avaliar orçamento e suas áreas ineficientes; o de Elhamma (2015) que analisou o impacto do tamanho da empresa na avaliação orçamentária e em desempenho; o de Leach-Lópes, Stammerjohan, Lee et al (2015) que analisaram o efeito do conflito na participação do orçamento sobre o desempenho no trabalho em um ambiente coreano; e o de Arnold e Gillenkirch (2015) que investigaram como uma tarefa de planejamento que está em conflito com a tarefa de AD afeta o comportamento nas negociações orçamentárias e seus resultados.…”