Document Type
Other
Publisher
Edith Cowan University
Place of Publication
Perth, Western Australia
Faculty
Faculty of Business
School
School of Accounting
Abstract
Prior research suggests that goal setting and an emphasis en meeting tight budget targets may influence the extent of subordinates' performance and slack creation. This study hypothesizes that other accounting controls may moderate these relationships. Specifically, it hypothesizes that: (i) budgetary performance is increased and (ii) budgetary slack creation is decreased when an emphasis on setting and meeting tight budget targets is complemented with a high extent of cost control. The results support a significant two-way interaction between Emphasis on setting and meeting tight budget targets and Cost control affecting budgetary performance. A significant two-way interaction between Emphasis en setting and meeting tight budget targets and Cost control affecting the propensity to create slack was also found for production managers. Marketing managers' propensity to create slack was found to be associated only with Emphasis en setting and meeting tight budget targets.
Comments
Lau, C. (1998). The interactive effects of different accounting controls on subordinates' behaviour and performance. Perth, Australia: Edith Cowan University.