The effects of measurement basis and slack benefits on honesty in budget reporting

Church, Bryan K.; Kuang, Xi; Liu, Yuebing

doi:10.1016/j.aos.2018.05.005

Cited by 24 publications

(31 citation statements)

References 78 publications

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“…The Budgetary Execution Indicator -Meeting the Budget, defined as budgetary performance measure, is formed by two questions whose objective is to measure how suitable the budgetary execution was in terms of meeting the budgetary goals and remark of the fulfilment the budget percentage (Mucci et al, 2016) because, if the goals were met, the fulfilment percentage would reflect this reach. The organizations use budget for the funds allocation to their departments and divisions (Church et al, 2018). The budgeting process suggests that the budget reflect the strategy of the institution, being able to indicate the goals of the organization, directing the agents" behavior and offering mechanisms for these agents" performance evaluation, thus, this device translates the organization strategies in quantitative, qualitative metrics and it is relevant for both the planning of future actions, and the control of current actions (Cardoso et al, 2007).…”

Section: Methodsmentioning

confidence: 99%

“…The budgeting process suggests that the budget reflect the strategy of the institution, being able to indicate the goals of the organization, directing the agents" behavior and offering mechanisms for these agents" performance evaluation, thus, this device translates the organization strategies in quantitative, qualitative metrics and it is relevant for both the planning of future actions, and the control of current actions (Cardoso et al, 2007). The endogenous design choices, in turn, determine several functional attributes of the budgetary system, including the accounting metrics used and the managers" discretion in the use of funds (Church et al, 2018). The hospital institutions, object of this study, are highly complex institutions, formed by several departments of high specificity and qualification, with strongly distinct features which need to be integrated in order to provide the most suitable treatment to their users.…”

Section: Methodsmentioning

confidence: 99%

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Health service in Brazilian private and public hospitals: Budgetary participation, feedback and performance from clinical managers perception

Santos¹,

Bonacim²,

Gaio³

2020

Afr. J. Bus. Manage.

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Budgetary control is pointed as a managerial mechanism suitable for cost reduction and control as well as performance evaluation of institutions. In health organizations, budget is used for funds allocation, coordination, control and communication of the institutions' strategies. In this context, the research will observe the phenomenon of budgetary process from the perspective of Health Service managers of public and private hospitals, called "clinical managers". It aims to check whether there is a relation between the budgetary process characteristics and the budgetary execution performance. Three hypotheses were tested for the analysis of the following budget characteristic, budgetary participation, budgetary feedback and budgetary evaluation. This theoretical research model is going to be analyzed using the structural equation method. The study evaluates if there is a relationship between the budget process characteristic and the budget execution indicator, called meeting the budget. The snowball sample technique was used to sample the research respondents. Thirty three clinical managers were used as sample for the study. The hypotheses were tested using the Smart Pls software. Only Hypothesis 3 was supported statistically, asserting that there is a positive and significant relationship between the budgetary evaluation characteristic and the budget execution performance. These evidences indicate that health service managers recognize the budgetary evaluation as a predominant feature which interferes with the budgetary execution of their field due to the liability on the result of such execution and the possibility of using this metrics in performance evaluation.

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Section: Methodsmentioning

confidence: 99%

Section: Methodsmentioning

confidence: 99%

Health service in Brazilian private and public hospitals: Budgetary participation, feedback and performance from clinical managers perception

Santos¹,

Bonacim²,

Gaio³

2020

Afr. J. Bus. Manage.

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“…3.2.3 Slack in budgeting. The literature about slack in budgeting from Niskanen (1971) and Onsi (1973) to Church et al (2019) provides different definitions and aspects of slack. From an economic theory perspective, Onsi (1973) and Merchant (1985) define slack as the difference between the resources available and the resources required by the organization.…”

Section: Budgeting As a Social Phenomenonmentioning

confidence: 99%

“…Overall, the value of slack from Onsi's (1973) point of view depends on the way in which mangers use the resources (Wiersma, 2017). When they use slack resources to their self-interest, it can affect managers' honesty (Church et al, 2019).…”

Section: Budgeting As a Social Phenomenonmentioning

confidence: 99%

Budget preparers’ perceptions and performance-based budgeting implementation

Jalali

Mashayekhi

Gal

2019

JPBAFM

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If you would like to write for this, or any other Emerald publication, then please use our Emerald for Authors service information about how to choose which publication to write for and submission guidelines are available for all. Please visit www.emeraldinsight.com/authors for more information. About Emerald www.emeraldinsight.comEmerald is a global publisher linking research and practice to the benefit of society. The company manages a portfolio of more than 290 journals and over 2,350 books and book series volumes, as well as providing an extensive range of online products and additional customer resources and services.Emerald is both COUNTER 4 and TRANSFER compliant. The organization is a partner of the Committee on Publication Ethics (COPE) and also works with Portico and the LOCKSS initiative for digital archive preservation. AbstractPurpose -The purpose of this paper is to examine the reason for the failure of implementing performance-based budgeting (PBB) at Iranian public universities and research institutes (PURI). This examination focuses on the actors participating in the budget processes and their perceptions. Design/methodology/approach -The study uses grounded theory and employs deep semi-structured interviews of budget preparers at Iranian PURI. Findings -The results indicate a loose coupling between perceived and regulated budgeting process. This leads to budgetary slack as a barrier for authentic information flow and indeed PBB implementation. In the analysis of the results, the authors suggest some ways to improve the current situation of the budgeting processes at Iranian PURI. Practical implications -Public organizations that desire to transform their budgeting system need to consider their actors' perceptions regarding the budgeting process. By explicitly considering their perceptions the organization may be able to solve any loose coupling as a result of internal, external and behavioral conditions. Originality/value -This research examines issues that arise in the transformation of organizational processes. The focus on budget processes is critical for organizations which receive most, if not all, of their operational funds from a central authority. This research highlights the role of budget actors' perceptions in transforming the budgeting process. An important result of this analysis is documenting the existence of loose coupling in the current budgeting process at Iranian PURI. This loose coupling results in slack creation and restricts the implementation of a PBB system. Additionally, this loose coupling limits the flow of authentic information.

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“…Primeiro, a principal abordagem de pesquisa na análise de Hesford et al (2007) é o desenvolvimento de estruturas conceituais. No Brasil, esforços nessa direção parecem limitados, sendo uma exceção o modelo GECON proposto por Catelli (2001). Segundo, estudos analíticos representam a segunda principal abordagem de pesquisa no contexto internacional.…”

Section: Métodos De Pesquisa E Nível De Análise Predominantesunclassified

O pequeno mundo da pesquisa em contabilidade gerencial no Brasil: discussão sobre desenhos alternativos de pesquisa

Aguiar

2018

Rev. contab. organ.

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The effects of measurement basis and slack benefits on honesty in budget reporting

Cited by 24 publications

References 78 publications

Health service in Brazilian private and public hospitals: Budgetary participation, feedback and performance from clinical managers perception

Health service in Brazilian private and public hospitals: Budgetary participation, feedback and performance from clinical managers perception

Budget preparers’ perceptions and performance-based budgeting implementation

O pequeno mundo da pesquisa em contabilidade gerencial no Brasil: discussão sobre desenhos alternativos de pesquisa

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