Date of Award
Doctor of Business Administration (DBA)
The goal of this study was to empirically examine the propensity to create budgetary slack. The research was designed to test the hypothesized moderating effect of broadscope managerial accounting system use on variables that are associated with the propensity to create budgetary slack, and it is the first known attempt to do so. The study also extends the previous research that has been conducted on budgetary slack.
After an extensive literature review was conducted on the variables studied, questionnaires were sent to 2,000 managers in the United States. The response rate was lower than expected at 105, but high enough to perform the needed methodology for this study.
The research found broadscope managerial accounting systems use significantly correlated to budget participation, budget emphasis and perceived environmental uncertainty. No support was found for broadscope managerial accounting system use as a moderator of the relationship between the propensity to create budgetary slack and budgetary participation, the propensity to create budgetary slack and budget emphasis, and the propensity to create budgetary slack and perceived environmental uncertainty.
The results of the study provide managerial implications for budgetary slack and broadscope managerial accounting systems. The findings of the study add to the growing body of empirical evidence regarding budgetary slack and the role information has in budgeting.
Linn, Gary, "" (1997). Dissertation. 762.