The influence of politics on the relationship between budgetary control and managerial roles: An empirical study.
Faculty of Business and Public Management
School of Accounting, Finance and Business Economics
A number of studies have investigated the relationship between budget related behaviour and managerial roles. Some have found a significant relationship, others have found a relationship only under conditions of low task uncertainty, still others have found no relationship at all. Politics and power plays an important role in the budget process, This study investigates the moderating effect of politics in the relationship between budgetary control and managerial roles. Based on an analysis of the literature a number of hypotheses are generated and tested based on data collected from the Indonesian state owned enterprises. Results of the moderated regression analysis suggest that politics play a significant moderating role in the relationship between budgetary control and managerial roles.