Budgetary Slack Research Articles

Pengaruh Partisipasi Anggaran dan Buddget Emphasis Terhadap Budgetary Slack melalui Asimeteri Informasi sebagai Variabel Mediasi pada Dinas Kearsipan dan Perpustakaan Kota Kupang

This study aims to find out whether there is an effect of budget participation, budget emphasis on budgetary slack through information asymmetry as a mediator at the Kupang City Archives and Library Office. The contribution of this research is expected to contribute to science in the field of regional financial management in order to improve performance in the organization in order to improve service quality. This research is quantitative in nature with the population being all employees of the Kupang City Archives and Library Office and the entire population is sampled. The data collection technique used was a questionnaire with a research tool using Smart PLS 3. The results of the study are that there is a negative and significant influence of budget participation on budgetary slack, budget emphasis is not significant on budgetary slack, information asymmetry has a positive and significant effect on budgetary slack, information asymmetry has a positive effect on budgetary slack, budget participation has a significant effect on information asymmetry, budget emphasis has an insignificant effect on information asymmetry, information asymmetry is able to provide The effect of budget participation on budgetary slack and information asymmetry are unable to mediate the effect of budget emphasis on budgetary slack.

Pengaruh Locus Of Control terhadap Budgetary Slack dengan Skill Teknologi sebagai Variabel Moderating pada Perumda Panglungan Kabupaten Jombang

This study aims to examine the effect of locus of control on budgetary slack with technological skill as moderation. The population in this study were employees of PERUMDA Panglungan Jombang Regency. Sample withdrawal using purposive sampling technique. This research uses a quantitative approach with Partial Least Square (PLS) analysis techniques The sample of this study was 120 respondents consisting of permanent employees and daily employees involved in the process. Based on the results obtained from this study, it shows that the locus of control variable has an effect on the budget gap. In the presence of technological skill as a moderating variable, locus of control has a positive and significant effect on budget constraints. The technological skills possessed by employees can reduce the budget constraints that occur due to an increase in locus of control of employees.

Updated Theory and New Evidence on the Effect of Information System Precision on Managerial Reporting

ABSTRACT Information asymmetry is fundamental to participative budgeting. Hannan, Rankin, and Towry (2006, “HRT”) develop a nuanced theory regarding the effect of information asymmetry on slack. The authors provide evidence that suggests increasing the precision of a superior’s information system, thereby reducing information asymmetry, can increase slack. We develop a refined version of HRT’s theory by incorporating evidence of how nonpecuniary incentives affect subordinates’ reporting slack from research subsequent to HRT. Our updated theory predicts that slack decreases as information system precision increases, opposite to the results in HRT. To test our refined theory, we replicate HRT’s experiment and find results consistent with our theory. Our results support HRT’s general theory but highlight the importance of establishing regularities of how nonpecuniary incentives affect behavior in accounting. Specifically, our updated theory and new evidence suggest that improving information system precision decreases budgetary slack, contrary to the results suggested in HRT. Data Availability: Data are available from the authors upon request. JEL Classifications: D82; M41; M52.

Pengaruh Partisipasi Anggaran Dan Budget Emphasis Terhadap Budgetary Slack Dengan Pertimbangan Etika Sebagai Variabel Moderasi

This study aimed to examine the effect of Budget Participation, Budget Emphasis on Budgetary Slack with Ethical Consideration as Moderating Variable. This kind of study is quantitative research with primary data collected in a questionnaire distributed to 38 respondents. The data is processed with multiple linear regression analysis by using Statistical Program for Social Science (SPSS). The results showed that budget participation and budget emphasis has effect on budgetary slack. Meanwhile, ethical considerations cannot moderate the relationship between budget participation and budget emphasis on budgetary slack.

The Effect of Prepayment Contract Frames and Feedback on Budgetary Slack: An Experimental Investigation

Introduction/Main Objectives: This research investigates the effect of prepayment contract frames and feedback incentives in mitigating budgetary slack. Background Problems: Clawback is an incentive scheme based on the endowment concept that has recently drawn researchers’ concerns. The literature suggests emphasizing the endowment and loss aversion concepts. This research examines these two concepts with one test model. Novelty: This research presents the preliminary manipulation role of hybrid clawback as one of the prepayment contract frames that are smoother and without penalty provisions. This study also examines the interaction between the concept of endowment and loss aversion in one test model. Research Methods: This research applied a field experiment with a 3 × 2 between-subject design. Finding/Results: This research found that prepayment contract frames require motivation from an adequate formal control system through frequent feedback to mitigate the slack. The findings prove that the capability of prepayment contract frames to minimize slack would be more effective after the frequency of the feedback has been moderated. Conclusion: The hybrid clawback could be a smoother alternative compensation scheme that is just as effective as a simple clawback, but without any penalty provisions. The effectiveness of a low feedback frequency could be increased to equal the efficacy of a high feedback frequency when assisted by prepayment contract frames.

The influence of strategic planning on budgetary slack: the mediate role of autonomous motivation and organisational commitment

The influence of strategic planning on budgetary slack: the mediate role of autonomous motivation and organisational commitment

FAKTOR-FAKTOR YANG MEMPENGARUHI KECENDERUNGAN MEMBUAT KESENJANGAN ANGGARAN

This research examines organizational commitment, general political behavior, budget participation on the budgetary slack. This research uses manufacturing companies in Banten as the research object. The number of samples in this study was 68 respondents. Data were analyzed using the SEM (Structural Equation Model) method via the SmartPLS (Partial Least Square) program version 4.0.
 The results of this research state that organizational commitment influences general political behavior. General political behavior influences budgetary slack. Organizational commitment influences budgetary slack. Budget participation has an influence on the budgetary slack. Organizational commitment influences budget participation. For manufacturing companies, it is hoped that it can be used as a means for evaluation and input to reduce the possibility of budget gaps. For further research, it is hoped that we can add external factor variables (job satisfaction, organizational culture, etc.) and add more respondents. Future researchers are also expected to be able to develop research from various other business entities, such as the banking, hotel, service, trade and state-owned sectors

Partisipasi Anggaran dan Senjangan Anggaran Dengan Ketidakpastian Karir Sebagai Variabel Pemoderasi

The aim of this research is to analyze and obtain empirical evidence about the effect of budget participation on budgetary slack which is moderated by career uncertainty. This research was conducted at Regional Government Organizations (OPD) in the form of departments and agencies in Gianyar Regency. The research sample was determined using a purposive sampling method of 108 samples consisting of heads of departments/agencies, secretaries, finance sub-divisions and planning sub-divisions from each OPD. The data collection method used is a survey method with a questionnaire instrument. The data analysis technique used is Moderated Regression Analysis (MRA). The research obtained results that the budget participation variable had a positive effect on budget gaps and the career uncertainty variable weakened the effect of budget participation on budget gaps in the OPD of Gianyar Regency.
 Keywords: Budgetary Participation; Career Uncertainty; Budgetary Slack

The Mediating Role of Employee Motivation in The Relationship Between Budget Participation and Budgetary Slack

Objectives: A budget is a plan expressed in the company's financial measures as a guideline for work in a certain period. Budgeting involves many parties starting from the top and bottom levels, making it vulnerable to budgetary slack. The purpose of this study is to examine employee motivation at the corporate offices of PT ASDP Indonesia Ferry (Persero) in order to ascertain the impact of budgetary participation on the occurrence of budgetary slack.Methodology: This study used quantitative research by conducting surveys through questionnaires. The respondents in this study were 211 employees of PT ASDP Indonesia Ferry (Persero) head office and were analyzed using path analysis.Finding: The findings indicated that when employees at PT ASDP Indonesia Ferry (Persero) head office are directly involved in budgeting, it has a noteworthy and favorable impact on their motivation and the occurrence of budgetary slack. Employee motivation has a direct and significant positive effect on budgetary slacks at PT ASDP Indonesia Ferry (Persero). Additionally, employee motivation at the PT ASDP Indonesia Ferry (Persero) headquarters can mediate the impact of budget participation on budgetary slack.Conclusion: This study highlights the significance of employee involvement in budgeting for enhancing motivation and reducing budgetary slacks. It underscores the need for balanced budget participation to maintain control and suggests that employee motivation acts as a vital mediator in this relationship, offering valuable insights for optimizing budget processes and fostering workforce efficiency.

PENGARUH SELF EFFICACY, PARTISIPASI ANGGARAN, PENEKANAN ANGGARAN, ASIMETRI INFORMASI TERHADAP BUDGETARY SLACK

Individual participation in the company's budgeting process can trigger the emergence of dysfunctional behavior in the form of the individual's tendency to commit budgetary slack.. The purpose of this research is to analyze the effect of self-efficacy, budgetary participation, budgetary emphasis, and information asymmetry on budgetary slack. This research adopts a quantitative approach, utilizing a survey methodology with a structured questionnaire. The analysis method includes descriptive statistics and assessments of data quality and multiple linear regression analysis. The study population and sample consist of 34 employees with structural positions involved in the budget preparation process at the Probolinggo Regency Disaster Management Agency. The findings reveal a negative correlation between self-efficacy and budgetary slack. Moreover, budget participation exhibits a positive influence on budgetary slack, along with budget emphasis. Additionally, information asymmetry is found to have a positive impact on the occurrence of budgetary slack. Keywords: Efficacy, Participation, Emphasis, Asymetric, Slack

Budget Communication, Final Authority, And Negotiation On Budgetary Proposal : An Experimental Study

This study aims to investigate the relation between budget communication, final authority and negotiation on budget setting which analyzed by Agency Theory. This research used 2x3 between subject experimental design of budget communications and final authority treatments. The results of this study show that less slack is created when budget proposal requires a factual assertion, but it’s not when manager not requires factual assertion. Meanwhile, in final authority condition, manager creates budget slack more when they have final authority than owner’s authority. This study show an evidence that there is no significant interaction between budget communication and final authority in creating budget slack. Additionally, this study finds that negotiation can influence manager’s performance although it’s measured by budget slack or output of production. Negotiation can reduce budget slack. The performance test (which is measured by ability of manager to make product) show that as a whole is not have difference significantly. Meanwhile, for budget slack show that slack in No Factual Assertion treatment is higher than Factual Assertion treatment.
 Keywords: Participative Budgeting, Budget Communication, Final Authority, Negotiation, Budget Slack, Manager’s Performance.

ANALYSIS OF MEASUREMENT MODELS FOR THE GOVERNMENT SPENDING QUALITY AND ACHIEVEMENT OF SUSTAINABLE DEVELOPMENT GOALS (SDGs)

The absence of quality spending become the main reason for government failed to provide multiplier in achieving its economic objectives. The phenomenon of budgetary slack will be likely to occur if there is no any standard to control government expenditure's success. This study aims to provide a method to identify the effectiveness of government budget by Comparing Sustainable Development Indicators as outcome and government expenditure relative to its economy as output. We also measure the rasio of government expenditure to its revenue sources as indicators of budget efficiency. Using 2021 data of SDGs indicators and government budget (both at central and regional or province government level) we found that both at the national and regional levels, the spending had been quite effective. Meanwhile for the level of budget efficiency, the central government is quite efficient, while some of regional governments were not.

KEJUJURAN DALAM PELAPORAN ANGGARAN Dengan Pendekatan Kuasi Eksperimen

Abstract: 
 Business practices carried out by company owners sometimes set targets that are too high so that budget managers use any means to meet these targets. Budget managers tend to provide dishonest or semi-honest budget reports by using sources of budgetary slack by using the benefits of direct or indirect budgetary slack. This study tries to use the basic concept of measuring budgets using financial elements so that managers are more interested in committing fraud than the concept of measuring using non-financial ones. Furthermore, elements of participatory budgeting are included which allows dishonesty to occur in budget reporting due to information gaps between lower managers and company owners.
 This study aims to determine how the basic influence of budget measurement, the benefits of budgetary slack, and participatory budgeting with the dependent variable, namely the honesty of budget reporting with a quasi-experimental method. This study was attended by 120 undergraduate accounting student participants who were divided into 4 experimental groups (2x2).
 The results of this study show that the basis for measuring the budget, the benefits of budgetary slack, and participatory budgeting have a significant effect on the honesty of budget reporting.
 
 Keywords: Financial and Non-Financial Measurement, Benefits of Budgetary Slack, Honesty in Financial Reporting.

The Influence of Budget Participation, Information Asymmetry, and Budget Emphasis on Budgetary Slack in Aceh Government

This study aims to examine the effect of budgetary participation, information asymmetry, and budget emphasis on budgetary slack in the SKPA Aceh Government. The population of this research is all State Civil Servants (ASN) in SKPA Aceh Government. The research sample used was 129 people selected by purposive sampling method, consisting of Heads of SKPA, Secretaries, and Heads of Planning and Reporting Subdivision in 43 SKPA. This research is a quantitative research, the data used is in the form of primary data obtained from distributing questionnaires to research respondents. The data analysis technique uses multiple linear regression analysis with the help of the IBM SPSS 26 program. The regression results for the partial test show that budget participation, information asymmetry, and budget emphasis have a positive and significant effect on budgetary slack in the Aceh Government SKPA.

Government Budgetary Slack (Case Study at The Directorate General of Highways Ministry of Public Works and Housing)

The purpose of this study is to get an in-depth picture of how the practice of revenue budget gaps in the public sector can occur and the factors that drive it. This research uses qualitative research methods with a case study approach. Data collection was conducted through interviews and supported by documentation and direct observation, the informants involved in this study were managers responsible for the revenue budgeting process at each level. The practice of budget gaps is more aimed at avoiding the risk of not achieving the target, this is also because there is no reward and punishment system for achieving revenue targets. The results showed that pseudo-budget participation and information asympization triggered budget gaps. Factors The lack of strict supervision in the budgeting process and access to stagnant information make the budget gap continue to occur. The risk of this gap practice is that the organization does not know the true optimal potential and the loss of potential income from asset utilization.

Gaya Kepemimpinan Memoderasi Hubungan Komitmen Organisasi Dengan Senjangan Anggaran Dengan Karakteristik Organisasi Sebagai Variabel Anteseden

This study aims is to determine factors that can cause budgetary slack. More specifically, the purpose of this study is to find out whether there is a moderating effect between leadership style and organizational commitment and budgetary slack by adding organizational characteristics as the antecedent variable of organizational commitment. The type of research used in this study is quantitative with experimental methods by providing treatment to the subjects involved. The design used for this experiment is a 2x2 design for the variables of leadership style and organizational characteristics. The result of this study is that managers with high organizational characteristics tend to have greater organizational commitment than managers with low organizational characteristics. Meanwhile, leadership style does not moderate the relationship between organizational commitment and budgetary slack. From the results of this study, it can be concluded that hight organizational characteristics can affect a manager’s organizational commitment. Companies need to pay attention to the characteristics of their workers, which in this case means instrumental communication or the quality of information conveyed by managers to their subordinates.
 Keywords: Budgetary slack; leadership style; organizational commitment; organizational characteristics; instrumental communication.

Participative Budgeting, Procedural Fairness, Distributive Fairness and Budgetary Slack: Evidence from Hospitality Sector in Indonesia

Budgets are important for owners and management in planning, controlling and serving as the basis for measuring performance. In the budgeting process, management often acts unethically, such as making budgetary slack and manipulating data. This study analyzes the direct and indirect relationship between budget participation and budgetary slack. Questionnaires were distributed to 74 respondents who work as supervisors or managers in the hospitality industry in the city of Bandung, West Java, Indonesia. The data is processed using a SEM with the help of Smart-Partial Least Square software with structural models and measurement models. This study shows that budget participation has a positive relationship with procedural fairness and distributive fairness. In addition, budget participation, procedural fairness and distributive fairness has a negative relationship with budgetary slack. Moreover, procedural fairness and distributive fairness mediate the relationship between budget participation and budget slack. This study supports the theory of budget participation and budgetary slack and has implications for budgeting practice. Hence, in the process of preparing the budget, it is very important to involve subordinates because it can reduce budgetary slack.

Pengaruh Kapasitas Individu, Skema Pemberian Intensif pada Budgetary Slack dengan Technological Skills sebagai Variable Moderasi

The purpose of this study was to examine the effect of Individual Capacity, and intensive granting schemes on Budget Bargaining with technological skill as moderation. The population in this study were employees of PERUMDA Panglungan Jombang Regency. Sample withdrawal using purposive sampling technique. This research uses a quantitative approach with Statistical Program for Social Science (SPSS) 26 analysis techniques. The sample of this study was 74 respondents consisting of permanent employees and daily employees involved in the budget process. This study uses multiple linear regression analysis. Based on the results obtained from this study, it shows that individual capacity has an effect on budget constraints, intensive provision schemes also have a significant effect on budget constraints, so it can be concluded that the variables of Individual Capacity and Intensive Provision Schemes affect Budget Concealment. With the existence of tecnologicall skill as a moderating variable, it has an effect on individual capacity and intensive giving schemes on budget constraints. The technological skills possessed by employees can reduce the budget gap that occurs due to an increase in the individual capacity of employees.
 Keywords: Budgetary Slack, Individual Capacity, intensive granting schemes, tecnologicall skill

Peer pressure and self-statement mechanism to mitigate management behavior in budgetary slack: An experimental approach

This study evaluates the susceptibility of management (especially management accountants) in creating budgetary slack by violating company policies. Reducing the creation of budgetary slack was evaluated by the relationship of the effects of peer pressure and perceived self-statement mechanisms within the scope of each social ethical dimension. Experimental results with 133 management accountants show that social and ethical friction can reduce the creation of budgetary slack by emphasizing peer pressure and self-assessment mechanisms. All experimental subjects could not violate company policy and it was proven by decreasing budgetary slack when faced with conditions without peer pressure and without a self-assessment mechanism. This finding provides evidence that budgetary slack is created when management is fully involved in setting the company's budget without any control from colleagues or leaders. The importance of social ethics in budgeting is raised by collegiate decisions in the team and creates a self-assessment mechanism for managers. Thus, resistance to creating budgetary slack can be increased and managers are held accountable for making budgetary decisions.

Information technology empowerment and corporate budget control: Evidence from China

This study uses revenue budget data to examine the relationship between information technology (IT) and corporations' budget control activities. The results show that investment in IT has a significant impact on corporations' budgeting behavior in that it reduces budget slack, so it can improve budget-control activities, particularly in non-state-owned corporations. We conclude that IT can regulate revenue budgeting by empowering corporations' management, specifically by alleviating demands for information and improving the efficiency of internal collaboration on resource use. The paper provides a new view of corporations' budget management behavior from the perspective of IT empowerment and internalizes the application of IT in decision-making processes related to corporate budget management.