Primary Determinant of Budgetary Slack in Small Manufacturing Firms

Tia   Fitriani; Bobby  Fisher

Article Details

Primary Determinant of Budgetary Slack in Small Manufacturing Firms

Authors:

Tia Fitriani | Bobby Fisher

Publisher:

KnE Social Sciences

Journal:

KnE Social Sciences Vol.3 Issue 26, pp.796-803

Document Type:

Article

Publication Date:

10/2019

Document Language:

English

Document ID (Org No.):

2001517705

pISSN:

2518-668X

Abstract:

 This study intendsto examine the effect of budget emphasis and budget participation on budgetary slack practiced in small manufacturing companies. The practices of budgetary slack are often thought to occur only in large companies, but depends on agency theory it can be apply to any agency relationship at every level and type of organization, the practices of budgetary slack, as a form of control costs, or part of agency costs, is suspected to occur in small manufacturing companies. Budgetary slack is worth investigating because this practice does not provide real economic results for the company. This research was conducted through a survey of 80 small manufacturing companies located in Tangerang. Data analysis techniques used linear regression.The resulthas indicatethat: (1)budgetemphasis isthe maindeterminantof budgetary slack practice; (2) budget participation, although it has a strong correlation with budgetary slack, is a signiﬁcant determinant of small manufacturing companies.

Article Details

Primary Determinant of Budgetary Slack in Small Manufacturing Firms

Authors: Tia Fitriani | Bobby Fisher

Publisher: KnE Social Sciences

Journal: KnE Social Sciences Vol.3 Issue 26, pp.796-803

Document Type: Article

Publication Date: 10/2019

Document Language: English

Document ID (Org No.): 2001517705

pISSN: 2518-668X

Issues

Authors:

Tia Fitriani | Bobby Fisher

Publisher:

KnE Social Sciences

Journal:

KnE Social Sciences Vol.3 Issue 26, pp.796-803

Document Type:

Article

Publication Date:

10/2019

Document Language:

English

Document ID (Org No.):

2001517705

pISSN:

2518-668X