Abstract
PurposeThe purpose of this paper is to empirically examine whether firms in Ghana allocate resources through the use of budgetary planning principles.Design/methodology/approachA survey was conducted using top business executive and budget holders of the firms listed on the Ghana Stock Exchange. The data were analyzed using the structural equation modeling (SEM) and, in particular, the PLS-SEM approach.FindingsThe study demonstrates that there is a statistically significant relationship between budgeting, performance management, and resource allocation constructs. The results indicate that performance management partially mediates the relations between budget planning and resource allocation. This indicates that firms in Ghana behave optimally by allocating resource using budgetary planning principles.Research limitations/implicationsThe study is limited to the firms listed on the Ghana Stock Exchange. As a policy implication, this study has established that efficiency revolves around making the possible use of a given set of resources and as such firms in Ghana allocate resources through the use of budget.Originality/valueThere have been just a few studies that tried to integrate budgeting, performance management, and resource allocation in a comprehensive framework to deal with agency problems.
Sign-in/Register to access full text options 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callMore From: African Journal of Economic and Management Studies
Disclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
