Budgeting Research: Three Theoretical Perspectives and Criteria for Selective Integration

Covaleski, Mark A.; Evans, John H.; Luft, Joan L.; Shields, Michael D.

doi:10.1016/s1751-3243(06)02006-2

Cited by 128 publications

(96 citation statements)

References 77 publications

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“…In particular, prior studies have devoted inadequate attention to the detailed practices through which accounting information is used by managers in their work (Ahrens & Chapman, 2007;Hopwood, 1989). Studies that focus on organisational-level issues only are limited because they are typically based upon assumptions about, rather than a detailed investigation of, managerial work behaviour (Covaleski, Evans, Luft and Shields, 2003;Hall, 2008a). What is often missing from these organisational accounts is an analysis of the detailed ways in which managers use accounting information to perform particular activities.…”

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confidence: 99%

Accounting information and managerial work

Hall

2010

Accounting, Organizations and Society

242

269

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Despite calls to link management accounting more closely to management (Jonsson, 1998), much is still to be learned about the role of accounting information in managerial work. This lack of progress stems partly from a failure to incorporate in research efforts the findings regarding the nature of managerial work, as well as inadequate attention devoted to the detailed practices through which accounting information is actually used by managers in their work. In this paper I draw on prior research to develop a series of propositions focused on three primary insights into how and why managers use accounting information in their work. First, managers primarily use accounting information to develop knowledge of their work environment rather than as an input into specific decision making scenarios. In this role, accounting information can help managers to develop knowledge to prepare for unknown future decisions and activities. Second, as accounting information is just one part of the wider information set that managers use to perform their work, it is imperative to consider its strengths and weaknesses not in isolation but relative to other sources of information at a manager's disposal. Third, as managers interact with information and other managers utilising primarily verbal forms of communication, it is through talk rather than through written reports that accounting information becomes implicated in managerial work. These insights have important implications for how managers use accounting information, and, in particular, require reconsideration of the types accounting information that managers find, or could find, helpful. The paper also considers how existing experimental and field-based methods could fruitfully be adapted to focus on the detailed activities through which managers engage with accounting information.

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confidence: 99%

Accounting information and managerial work

Hall

2010

Accounting, Organizations and Society

242

269

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“…All aspects of management accounting are closely related to the budget, such as cost accounting, accountability, performance appraisal and compensation, and budgets are often used for planning and coordinating organizational activities, resource allocation and employee motivation [3]. Argyris [1] argues that authoritarian budgets can create cognitive differences among employees, which can lead to stress, interpersonal conflicts, distrust and ultimately lead to negative functional behaviors, but budget participation can be used as a means to alleviate this problem.…”

Section: Definition Of Budget Participationmentioning

confidence: 99%

“…Although there is strong evidence of economic and psychological support for the positive relationship between budget participation and management performance [2,3], non-obvious or even negative relationships have also been reported. The differences among the theorists in the study of the relationship between budget participation and management performance provide (1) explanations based on contingency theory and (2) intermediate variables, and given the importance of understanding the relationship between budget participation and performance, it is necessary to develop a systematic analysis between the difference of studies.…”

Section: Introductionmentioning

confidence: 99%

Research on the Impact of Budgetary Participation on Management Performance Based on Meta-analysis

Deng¹

2018

Proceedings of the 2018 5th International Conference on Management Science and Management Innovation (MSMI 2018)

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Abstract.The relationship between the participating budget and performance is hot but not yet resolved unanimously in management accounting research. In this paper, meta-analysis is used to explore whether methodological concerns (sample selection) and theoretical concerns (cultural differences) help explain observed differences in present relevant research results. Consistent with the prediction, the overall participating budgeting-performance relation is significant positive and heterogeneous, however, sample selection methods and cultural differences do not regulate the relationship between budget participation and management performance.

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“…Organizations allow employees to participate in the budget-setting process expecting to reduce budgetary slack or improve performance (Douglas and Wier 2000;Covaleski et al 2003;Marginson and Ogden 2005;Sheely and Brown 2007;Derfuss 2009). However, the results of prior studies examining the relationship between budgetary participation and managerial performance are inconsistent.…”

Section: Introductionmentioning

confidence: 99%

Assessing the impact of budgetary participation on budgetary outcomes: the role of information technology for enhanced communication and activity-based costing

2014

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This paper addresses the long-standing question of how budgetary participation (BP) affects budgetary outcomes. Information technology for enhanced communication (ITEC) and activity-based costing (ABC) are taken into consideration as moderators that might affect the relationship between BP and budgetary outcomes in manufacturing firms. Based on moderated and polynomial regression analyses, the study's findings indicate that the main effects of BP, ITEC and ABC on budgetary outcomes are not significant, and that while ABC significantly moderates the relationship between budgetary participation and budgetary slack, ITEC does not moderate this relationship. Results also indicate that both ITEC and ABC significantly moderate the relationship between budgetary participation and managerial performance. These findings suggest that the effect of budgetary participation on budgetary outcomes can be contingent on ITEC and ABC although their impact varies with the nature of budgetary outcomes.

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Budgeting Research: Three Theoretical Perspectives and Criteria for Selective Integration

Cited by 128 publications

References 77 publications

Accounting information and managerial work

Accounting information and managerial work

Research on the Impact of Budgetary Participation on Management Performance Based on Meta-analysis

Assessing the impact of budgetary participation on budgetary outcomes: the role of information technology for enhanced communication and activity-based costing

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