| Summary: | 博士 === 國立中山大學 === 企業管理學系研究所 === 89 === The relationship between budgetary participation, budgetary slack and performance has received a great deal of attention in the literatures of management accounting. However, there is a little consistent conclusion in the relationship between budgetary participation, budgetary slack and performance. Behavior accounting researchers using the Contingent Theory in order to conciliate these inconsistent conclusions also confound contrary results (such as Merchant (1985) and Dunk (1993)). This study suggested that the perceived cause of budgetary participation and the cognitive functions of budgetary participation are important determinants of propensity to create budgetary slack and performance. In addition, this study considered the influence of procedural justice about budgetary decision on budgetary slack and performance. We proposed that there are three actions of participator in the process of participation. The first, subordinate would review the surroundings around themselves like environment uncertainty, task uncertainty, budgetary emphasis, role ambiguity and information asymmetry. The second, subordinates will think the need of functions of participation. The surrounding variables will influence the cognitive functions of participation. Finally, they will decide the subsequent action (in this study we discuss the propensity of budgetary slack and performance).
We gathered data from 174 subordinate managers working in the publicly owned companies in Taiwan and used LISREL to test our hypotheses. The results of this study revealed that 1.The cause of budgetary of participation is imperative factor influencing the need of the functions of budgetary participation. The environment uncertainty, task uncertainty, role ambiguity and information asymmetry has positively direct influence on the need of informational effect of budgetary participation respectively. Budgetary emphasis has positively direct influence on the need of affective/motivational effect of budgetary participation. 2.The informational effect of budgetary participation was directive associated with budgetary slack. However, the affective/motivational effect of budgetary participation was indirectly related to budgetary slack through procedural justice. 3. The affective/motivational effect of budgetary participation was directive associated with performance. However, the informational effect of budgetary participation was indirectly related to performance through procedural justice and affective/motivational effect of budgetary participation. We anticipated that the result of this study could offer insight into the relationship between budgetary participation, slack and performance. In addition, we expect to give some suggestions to firms that implement participatory budgeting system to avoid dysfunctional behavior of employees and to encourage performance.
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