Research on the Budgetary Slack Behavior to the Construction Machinery and Equipment Manufacturing Enterprise in China

Abstract

In Chinese construction machinery and equipment manufacturing enterprises, the behavior of budgetary slack is an intractable problem in comprehensive budget management so far. In this paper, the causes of budgetary slack behavior, from points of agency theory, contingency theory, behavioral theory, psychology theory, information asymmetry theory and motivation theory, and from the lack of relativity between the theory and practice of management accounting, are analyzed systematically. Some management countermeasures are advanced to prevent budgetary slack. As the research consequence, the compromised point is the appropriate budgetary slack is not harmful to corporate performance.