The Moderating Effects of Personality and Compensation Schemes on the Budgetary Participation ‐ Performance Relationship

Abstract

Using a contingency approach, this study examines the moderating effects of personality and compensation schemes on the budgetary participation ‐ performance relationship. The data collected from a random sample of 303 chartered management accountants in Hong Kong was used to test three hypotheses. Multiple regression analyses found that both personality and compensation schemes interacted singly as well as jointly with budgetary participation in affecting performance. Post‐hoc tests further reveal that managers who perform better when they are highly participative in budget processes, are internally‐oriented, and receive a high variable‐pay income. The results are of interest not only to researchers but also to practitioners in management selection, job placement, and compensation package designs.

Citation

TW Leung, S. and YS Chan, S. (2001), "The Moderating Effects of Personality and Compensation Schemes on the Budgetary Participation ‐ Performance Relationship", Asian Review of Accounting, Vol. 9 No. 2, pp. 38-55. https://doi.org/10.1108/eb060742