Impact of Organisational Factors on Budgetary Slack
Kesan Faktor Organisasi ke atas Regangan Belanjawan
Keywords:
Power distance, Budgetary slack, Budget participation, Budget emphasis, Information asymmetryAbstract
This study examines the impact of organisational factors on budgetary slack among managers in Malaysia. The organisational factors as identified in prior research are budget participation, budget emphasis, information asymmetry and power distance. Specifically, this paper focuses on the influence of these factors either individually or interactively on the occurrence of the budgetary slack. Data are collected using questionnaire from 83 managers randomly selected from companies listed in Bursa Saham excluding finance, warrant and loan sector. Factor analysis results show that there are two dimensions of power distance i.e. supervisor style and management style. Individual relationships were tested using multiple regression and interaction relationships used moderated regression. Multiple regression results indicate a negative and significant relationship between management style and budgetary slack. Moderated regression results show a significant positive relationship between two way interaction of budget participation and budget emphasis with budgetary slack, and three way
interaction of budget participation, budget emphasis and information asymmetry with budgetary slack. As a whole, the results imply that high power distance (management style) decreases the budgetary slack, while high interaction of budget participation, budget emphasis, and information asymmetry increases the budgetary slack. These results indicate that management should choose the right combination of budget participation, budget
emphasis, and information asymmetry, and management style to control budgetary slack. The findings of this study could assist management of companies to understand the important factors that influence budgetary slack, which in turn may lead to effective management.
Kajian ini mengkaji kesan faktor organisasi ke atas regangan belanjawan di kalangan pengurus di Malaysia. Faktor organisasi seperti yang telah dikenalpasti dari kajian lepas adalah penyertaan belanjawan, penekanan belanjawan, asimetri maklumat dan jarak kuasa. Khususnya, kajian ini fokus kepada pengaruh faktor-faktor ini secara individu atau secara interaksi ke atas kehadiran regangan belanjawan. Kutipan data adalah menggunakan borang soal-selidik dari 83 pengurus yang dilpilih secara rawak dari syarikat yang disenarai di Bursa Malaysia tidak termasuk kewangan, waran dan sektor pinjaman. Hasil dari analisis faktor menunjukkan terdapat dua dimensi jarak kuasa iaitu gaya pengurus dan gaya pengurusan. Hubungan individu diuji menggunakan regrasi berganda dan hubungan interaksi pula diuji dengan menggunakan regrasi moderat. Hasil analisis regrasi berganda menunjukkan hubungan negative yang signifikan antara gaya pengurusan dan regangan belanjawan. Hasil analisa regrasi moderat menunjukkan hubungan positif yang signifikan antara interaksi penyertaan belanjawan dan penekanan belanjawan dengan regangan belanjawan dan antara interaksi penyertaan belanjawan, penekanan belanjawan dan asimetri maklumat dengan regangan belanjawan. Secara keseluruhan, kajian menunjukkan semakin tinggi jarak kuasa (gaya pengurusan) mengurangkan regangan belanjawan, sementara semakin tinggi interaksi penyertaan belanjawan, penekanan belanjawan dan asimetri maklumat meningkatkan regangan belanjawan. Hasil kajian ini menunjukkan pengurusan perlu memilih kombinasi penyertaan belanjawan, penekanan belanjawan, asimetri maklumat dan gaya pengurusan untuk mengawal regangan belanjawan. Hasil kajian ini juga dapat membantu pengurusan syarikat dalam memahami faktor penting yang mempengaruhi regangan belanjawan dan seterusnya ke arah pengurusan yang efektif.
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