Participative Budgeting, Procedural Fairness, Distributive Fairness and Budgetary Slack: Evidence from Hospitality Sector in Indonesia
| Autor: | Vega Febryandoko, Yenni Carolina |
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| Jazyk: | angličtina |
| Rok vydání: | 2023 |
| Předmět: | |
| Zdroj: | International Journal of Academe and Industry Research, Vol 4, Iss 3, Pp 38-61 (2023) |
| Druh dokumentu: | article |
| ISSN: | 2719-0617 2719-0625 |
| DOI: | 10.53378/353002 |
| Popis: | Budgets are important for owners and management in planning, controlling and serving as the basis for measuring performance. In the budgeting process, management often acts unethically, such as making budgetary slack and manipulating data. This study analyzes the direct and indirect relationship between budget participation and budgetary slack. Questionnaires were distributed to 74 respondents who work as supervisors or managers in the hospitality industry in the city of Bandung, West Java, Indonesia. The data is processed using a SEM with the help of Smart-Partial Least Square software with structural models and measurement models. This study shows that budget participation has a positive relationship with procedural fairness and distributive fairness. In addition, budget participation, procedural fairness and distributive fairness has a negative relationship with budgetary slack. Moreover, procedural fairness and distributive fairness mediate the relationship between budget participation and budget slack. This study supports the theory of budget participation and budgetary slack and has implications for budgeting practice. Hence, in the process of preparing the budget, it is very important to involve subordinates because it can reduce budgetary slack. |
| Databáze: | Directory of Open Access Journals |
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