For correspondence:-
Received: 30 Oct 2017 Accepted: 4 Dec 2017 Published: 31 Dec 2017
Citation: BUDGET PARTICIPATION, MANAGERIAL PERFORMANCE AND BUDGETARY SLACK: THE INTERVENING ROLE OF BUDGET PRESSURE AND MONITORING. Account Tax Rev 2002; 1(1):9-37 doi:
© 2002 The authors.
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Abstract
The study seeks to ascertain the role budget pressure and monitoring plays in the relationship between budget participation, managerial performance and budgetary slack. The study used data collected through questionnaire administered on 247 employees of the 177 firms listed on the floor of the Nigerian Stock Exchange as June, 2016. The test items were analysed using factor analysis and the specified models were estimated using the ordered logit and probit regression technique through computer software IBM SPSS 23.0 and E-view 9.5. The study finds a significant negative relationship between budgetary slack and managerial performance. Moreover, the study finds a significant positive relationship between organisational commitment and managerial performance. The study also finds that budget participation alone tends to reduce managerial performance as a result of budgetary slack creation but when employees and subordinate managers are closely monitored at the time of preparing the budget, budget participation tends to improve managerial performance. Thus, the study concludes that there is an indirect positive relation between budget participation and managerial performance through the intervening role of budget pressure and monitoring. JEL Classification: G310
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