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

Made Aristia Prayudi,Nyoman Ari Surya Dharmawan

doi:10.33005/ebgc.v1i2.21

Abstract

This study aimed to investigate budgetary slack behavior due to obedience pressure to authority in governmental organization. This study also evaluates the role of religiosity in determining budgetary slack creation in such situation. The results of experiment with 64 undergraduate students as participants indicate that majority of participants obeyed the order of their immediate superior to create budgetary slack in violation of organization policy. This study also found that participants’ level of religiosity do have impact on their actual behavior to create budgetary slack. Participants with high level of religiosity are documented to create smaller amount of budgetary slack than those who have low level ofreligiosity when faced with obedience pressure from their superior.

Highlights

In the middle of the development model of ethical decision making models that featured so many variables the antecedent ethical behavior options (Loe, Ferrell, & Mansfield, 2000), the attention of the researchers are beginning to turn to the potential role of aspect religiosity in explaining how those decisions can be generated in the Organization (Kum-Lung & Teck-Chai, 2010; Rashid & Ibrahim, 2007; Saat, Porter, & Woodbine, 2009)
This present study aims to test the role of aspects of religiosity as a determinant of budgetary slack behavior in the environment of the government organization
The study found that the majority of participants meet the orders of superiors to create a budget for budgetary slack even though it violated the general policy of the organization

Summary

Introduction

In the middle of the development model of ethical decision making models that featured so many variables the antecedent ethical behavior options (Loe, Ferrell, & Mansfield, 2000), the attention of the researchers are beginning to turn to the potential role of aspect religiosity in explaining how those decisions can be generated in the Organization (Kum-Lung & Teck-Chai, 2010; Rashid & Ibrahim, 2007; Saat, Porter, & Woodbine, 2009). On the scope of accounting, some recent literatures have documented the role of empirical evidence of aspects of religiosity in minimizing the occurrence of financial reporting fraud (McGuire, Omer, & Sharp, 2011), counterfeiting tax magnitudes company (Dyreng, Mayew, & Williams, 2012) or costing excessive auditing services (Leventis, Dedoulis, & Abdelsalam 2015). This present study aims to test the role of aspects of religiosity as a determinant of budgetary slack behavior in the environment of the government organization. Investigation conducted by PwC (2010) in 35 countries around the world found that the factors of psychological pressure to meet the demands of the target achievement of superiors is one of the main factor that triggers the appearance of fraud in the organization government

Objectives

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Results

Conclusion