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Article
Publication date: 12 December 2022

Pedro Silva, Jorge Mota and Antonio Carrizo Moreira

Recent years witnessed an exponential growth of the Portuguese real estate market. This growth has generated the need to implement effective management control tools to allow…

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Abstract

Purpose

Recent years witnessed an exponential growth of the Portuguese real estate market. This growth has generated the need to implement effective management control tools to allow companies to improve their planning and monitoring of activities. Drawing on the agency and goal-setting theories, this paper explores the impact of companies' participative budgeting processes on employee performance in the real estate industry.

Design/methodology/approach

For this purpose, a questionnaire was developed and a sample of 116 employees that participate in the budgeting process of real estate organizations collected, with data analyzed using structural equation modelling.

Findings

The results show that participation in the budgeting process has an impact on employees' performance through budget goal commitment, trust and job satisfaction. However, no statistical support was found for the role of budgetary slack in this process.

Research limitations/implications

This study was conducted in a single industry and is based on self-reported measures of employees that participate in the budgeting process of their organizations.

Practical implications

The findings highlight the need for real estate organizations to involve their staff in the elaboration of budgets, contributing to a higher level of commitment to established goals, job satisfaction, trust and performance. Real estate organizations should provide adequate working conditions, foster their employees' autonomy and recognize their work.

Originality/value

The findings encourage real estate companies to extend the participation in the budget process to employees and, ultimately, to mitigate the probability of budget failure.

Details

Baltic Journal of Management, vol. 18 no. 2
Type: Research Article
ISSN: 1746-5265

Keywords

Open Access
Article
Publication date: 17 May 2023

Jurica Lucyanda and Mahfud Sholihin

This research aims to study budgetary slack from a behavioural perspective, especially examining the effect of gender and code of ethics on budgetary slack ethical judgment.

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Abstract

Purpose

This research aims to study budgetary slack from a behavioural perspective, especially examining the effect of gender and code of ethics on budgetary slack ethical judgment.

Design/methodology/approach

This study adopts the experimental method of 2 × 3 between-subjects mixed factorial design with 102 participants to test the hypotheses. The participants are undergraduate and postgraduate accounting students at a major university in Indonesia.

Findings

The results show that gender affects budgetary slack ethical judgment, in which women judge budgetary slack as more unethical than men. Additionally, the results indicate that individuals consider budgetary slack more unethical when a code of ethics is present than when it is absent.

Originality/value

This study contributes to the management accounting literature and behavioural research by understanding budgetary slack from an ethical perspective. Additionally, this study contributes to ethics literature by identifying the effect of gender and code of ethics on budgetary slack righteous judgment.

Details

Journal of Economics, Finance and Administrative Science, vol. 28 no. 56
Type: Research Article
ISSN: 2077-1886

Keywords

Article
Publication date: 18 September 2023

Ali Falaah Hassan and Rohaida Basiruddin

This study aims to investigate the influence of budgetary participation on budget quality on top of the moderating role of environmental uncertainty on the said relationship.

Abstract

Purpose

This study aims to investigate the influence of budgetary participation on budget quality on top of the moderating role of environmental uncertainty on the said relationship.

Design/methodology/approach

The objectives of the current study were achieved through a survey conducted in 15 Iraqi states. Each state contains several municipalities. In total, 180 survey forms were disseminated to the heads of the municipalities, where ultimately 155 questionnaires proceeded to the data analysis stage. In this stage, statistical package for social sciences, analysis of moment structure and structural equation modelling were used to solve the research problem and achieve the objectives.

Findings

Through the results of the statistical analysis, this study concluded the significant and positive effect of budgetary participation on budget quality. In addition, the study confirmed the moderating role of environmental uncertainty in weakening the positive relationship between budgetary participation and budget quality.

Originality/value

The findings can be used to encourage municipal institutions and local governments to expand on the factor of employee participation in affecting the process of budget determination, hence mitigating budget failure.

Details

Journal of Financial Reporting and Accounting, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1985-2517

Keywords

Article
Publication date: 24 March 2022

Stephen Korutaro Nkundabanyanga, Kelum Jayasinghe, Ernest Abaho and Kenneth Mugambe

The purpose of this study is to examine the viewpoints and experiences of multiple budget actors to understand their particular budget related behaviours contingent upon the…

Abstract

Purpose

The purpose of this study is to examine the viewpoints and experiences of multiple budget actors to understand their particular budget related behaviours contingent upon the COVID-19 (C19) pandemic of a developing country.

Design/methodology/approach

This study uses Uganda as a case study and employs semi-structured interview method for the data collection. In trying to generate themes and patterns, data are analysed through three levels of coding: open, axial and selective coding. The contingency theory is used to interpret the data.

Findings

The task of budgeting formulation, implementation and control in times of C19 lead to varied actual behaviours of budget actors because of the environmental uncertainty, inappropriate structural and technological conditions and manipulative organisational cultures contingent upon the Ugandan C19 budget context.

Research limitations/implications

The insights generated from the study can be useful for the national governments of emerging economies, e.g. African countries, to understand the conditions that influence the budget actors' behaviour and together, develop long-term financial resilience strategies to face future emergencies.

Originality/value

This study contributes to accounting and public budgeting theory by showing that contingency theory is a relevant framework for understanding budget actors' behaviour in emergency situations. The study potentially strengthens the contingency theory framework through its incorporation of organisational culture perspective into the “people” element.

Details

Journal of Public Budgeting, Accounting & Financial Management, vol. 35 no. 3
Type: Research Article
ISSN: 1096-3367

Keywords

Book part
Publication date: 24 October 2023

Timothy C. Miller, Sean A. Peffer and Dan N. Stone

This study contributes to the participative budgeting and budget misrepresentation literature by exploring: (1) whether managers’ judgments of fair behaviors are malleable and…

Abstract

This study contributes to the participative budgeting and budget misrepresentation literature by exploring: (1) whether managers’ judgments of fair behaviors are malleable and context-dependent and (2) if these judgments of fair behavior impact cost reporting misrepresentations. Two experiments investigate these questions. Experiment 1 (n = 42) tests whether the behavior that managers judge to be “fair” differs based on the decision context (i.e., initial economic position [IEP]). Experiment 2 (n = 130) investigates: (1) how managers’ deployment of fairness beliefs influences their reporting misrepresentations and (2) how decision aids that reduce task complexity impact managers’ deployment of fairness beliefs in their misreporting decisions. The study found that managers deploy fairness beliefs (i.e., honesty or equality) consistent with maximizing their context-relevant income. Hence, fairness beliefs constrain misrepresentations in predictable ways. In addition, we find more accounting information is not always beneficial. The presence of decision aids actually increases misrepresentations when managers are initially advantaged (i.e., start with more resources than others). The implications from these findings are relevant to the honesty and budgeting literature and provide novel findings of how managers’ preferences for fairness constrain managers from maximizing their income. The chapter demonstrates that contextual factors can influence the deployment of managers’ fairness beliefs which, in turn, differentially impact their reporting misrepresentation. Another contribution is that providing decision aids, which reduce task complexity, may not always benefit companies, since such aids may increase misrepresentation under certain conditions.

Details

Advances in Management Accounting
Type: Book
ISBN: 978-1-83753-917-8

Keywords

Book part
Publication date: 24 October 2023

Umesh Sharma and Denise Frost

The purpose of this chapter is to examine the budgeting process in a local church from a social capital perspective. The social capital provides novel insights into the…

Abstract

The purpose of this chapter is to examine the budgeting process in a local church from a social capital perspective. The social capital provides novel insights into the construction of budgets and its social aspects. A qualitative case study was adopted, with an interpretive methodology. Semi-structured interviews were used to interview 14 managers involved in the budgeting process at a local independent church. The interview data were supplemented by documentary evidence. Nahapiet and Ghoshal (1998) framework of social capital was used to analyse the data. The main finding was that budgeting was found to be a social process – that can best be explained by social capital theory. There may be an element of self-selection, as the church agreed to participate in the study and chose to allow a researcher to examine social aspects of its budgeting process. The chapter contributes to both social capital theory and church literature. Social capital provides novel insights into the construction of budgets and its social aspects. In addition, contemporary budgeting practices are studied in a church in a denomination and country not previously studied.

Details

Advances in Management Accounting
Type: Book
ISBN: 978-1-83753-917-8

Keywords

Abstract

Details

Journal of Economics, Finance and Administrative Science, vol. 28 no. 56
Type: Research Article
ISSN: 2077-1886

Open Access
Article
Publication date: 19 December 2023

Lili-Anne Kihn and Eva Ström

This study examines how the strong emphasis placed on the purposes of budgeting, referring to a comprehensive focus on budgeting, is related to top managers' education and tenure…

Abstract

Purpose

This study examines how the strong emphasis placed on the purposes of budgeting, referring to a comprehensive focus on budgeting, is related to top managers' education and tenure while controlling for their functional positions in their respective firms and ages, as well as several company-specific predictors (information quality, firm size, information technology, importance of profit and strategy).

Design/methodology/approach

Survey data were collected from senior managers of large manufacturing firms in Finland and Sweden.

Findings

The results suggest that academic business education is positively associated with a comprehensive focus on budgeting, but tenure as well as functional position in the company (Chief Financial Officer (CFO) or not) and age are not. Overall, the company-specific control variables in general and information quality in particular are shown to have greater explanatory power than the top management characteristics analyzed.

Research limitations/implications

This study identifies several empirically supported factors that seem to contribute to a comprehensive focus on budgeting. The effects of information quality, business education, the importance of profit and firm size could be considered in future research.

Practical implications

Academic business education matters more than the other top management characteristics analyzed. If organizations want to make comprehensive use of budgets, they should employ business graduates and be mindful of company-specific variables.

Originality/value

This study is the first to address a comprehensive focus on budgeting and some of its determinants. Future research could investigate a broader set of such determinants in different contexts.

Details

Journal of Applied Accounting Research, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 0967-5426

Keywords

Article
Publication date: 27 April 2023

Hidenori Sato and Kiyohiro Oki

This study aims to investigate the consequences of middle managers’ sensegiving for organisational change in neglected workplaces, where middle managers are given insufficient…

Abstract

Purpose

This study aims to investigate the consequences of middle managers’ sensegiving for organisational change in neglected workplaces, where middle managers are given insufficient resources because of receiving low attention from top management.

Design/methodology/approach

The authors conducted a case study of three call centres in the Japanese non-life insurance industry. To collect data, the authors conducted interviews with ten stakeholders and made multiple field observations.

Findings

The authors identified the following mechanism: in neglected workplaces, middle managers initially focus on sensegiving to employees because they recognise the difficulty of eliciting support from top management. However, as a result, they see sensegiving to employees as top priority and do not try to elicit the support of top management, which is necessary for further organisational change. As a result, organisational change stops at a certain level.

Research limitations/implications

The authors identified the following mechanism: in neglected workplaces, middle managers initially focus on sensegiving to employees because they recognise the difficulty of eliciting support from top management. However, as a result, they see sensegiving to employees as their top priority and do not try to elicit the support of top management, which is necessary for further organisational change. As a result, organisational change stops at a certain level.

Originality/value

First, this study contributes to the body of research on the effects of sensegiving on organisational change. It shows the new problems hidden behind organisational change, which existing research merely regards as independent successes. Second, this study identifies middle managers’ behaviour during organisational change in neglected workplaces. Instead of focusing on the factors necessary for successful organisational change, as in existing studies, this study extends the knowledge of the role of middle managers in organisational change by focusing on their behaviours when success factors are not aligned.

Details

International Journal of Organizational Analysis, vol. 32 no. 3
Type: Research Article
ISSN: 1934-8835

Keywords

Article
Publication date: 7 November 2023

Niels Sandalgaard and Per Nikolaj Bukh

This study focuses on ratcheting and budget behavior in nonprofit museums. Specifically, the authors examine how performance compared with the budget affects future revenue…

Abstract

Purpose

This study focuses on ratcheting and budget behavior in nonprofit museums. Specifically, the authors examine how performance compared with the budget affects future revenue budgets, and how this differs from the extant literature focused on for-profit organizations. The study focuses specifically on the relationship between museums and their sources of public funding and how this affects how museums prepare budgets.

Design/methodology/approach

Based on four years of data covering 97 state-subsidized Danish museums, the authors analyze budget ratcheting using least absolute deviation (LAD) estimations in the form of median regressions.

Findings

The authors find that when actual revenue from admission charges is below the budget, the decrease in the following year's budget is greater than the increase in the following year's budget when actual revenue from admission charges is above the budget (i.e. the authors find asymmetrical ratcheting).

Research limitations/implications

The findings are based on a specific setting (Danish museums), and the results may not be generalizable to other settings.

Practical implications

This study provides insights into the museum sector and other sectors with similar characteristics and contributes to understanding the differences between museums and for-profit organizations when it comes to budgeting. As private-sector management practices are gaining ground in the museum sector, it is important to learn more about budgeting-related issues in this sector.

Originality/value

The asymmetrical ratcheting the authors find is the opposite of ratcheting typically found in for-profit organizations. The authors attribute the results to the incentive conflict between museums and their public funding sources. The authors point to the museums' dependence on public funding as an explanation for the results and, thereby, extend the knowledge on ratcheting to organizations with different characteristics than traditional, for-profit organizations.

Details

Journal of Public Budgeting, Accounting & Financial Management, vol. 35 no. 5
Type: Research Article
ISSN: 1096-3367

Keywords

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