IDEAS home Printed from https://ideas.repec.org/a/taf/acctbr/v27y1996i1p41-50.html
   My bibliography  Save this article

Testing a Model of Cognitive Budgetary Participation Processes in a Latent Variable Structural Equations Framework

Author

Listed:
  • Nace Magner
  • Robert Welker
  • Terry Campbell

Abstract

Previous accounting research has suggested that subordinate participation in the budgetary process has two cognitive aspects: (1) participation enhances budget quality, and hence the utility of budgets, by allowing subordinates to introduce private knowledge into the budgetary process, and (2) participation enables subordinates to obtain information that is relevant to performing their jobs. This study tests a model that encompasses both cognitive aspects of budgetary participation. Data were gathered with a questionnaire distributed to managers from a variety of different national origins who were working in many different global locations. The data were analysed with latent variable structural equation modelling, which provides several advantages over more conventional analytic methods generally used in budgetary participation and other behavioural accounting research. The results indicated that participation enhances budget quality and that budget quality, in turn, has a positive effect on budget utility. Participation was also found to have a direct and positive effect on job-relevant information. The results failed to support a proposed indirect effect of participation on job-relevant information through the enhancement of budget quality.

Suggested Citation

  • Nace Magner & Robert Welker & Terry Campbell, 1996. "Testing a Model of Cognitive Budgetary Participation Processes in a Latent Variable Structural Equations Framework," Accounting and Business Research, Taylor & Francis Journals, vol. 27(1), pages 41-50.
    • Handle: RePEc:taf:acctbr:v:27:y:1996:i:1:p:41-50
    DOI: 10.1080/00014788.1996.9729530
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1080/00014788.1996.9729530
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1080/00014788.1996.9729530?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Mia, Lokman, 1989. "The impact of participation in budgeting and job difficulty on managerial performance and work motivation: A research note," Accounting, Organizations and Society, Elsevier, vol. 14(4), pages 347-357, July.
    2. Merchant, Kenneth A., 1985. "Budgeting and the propensity to create budgetary slack," Accounting, Organizations and Society, Elsevier, vol. 10(2), pages 201-210, April.
    3. Lukka, Kari, 1988. "Budgetary biasing in organizations: Theoretical framework and empirical evidence," Accounting, Organizations and Society, Elsevier, vol. 13(3), pages 281-301, April.
    4. Chenhall, Robert H. & Brownell, Peter, 1988. "The effect of participative budgeting on job satisfaction and performance: Role ambiguity as an intervening variable," Accounting, Organizations and Society, Elsevier, vol. 13(3), pages 225-233, April.
    5. Daroca, Frank P., 1984. "Informational influences on group decision making in a participative budgeting context," Accounting, Organizations and Society, Elsevier, vol. 9(1), pages 13-32, January.
    6. Campbell, Donald J. & Gingrich, Karl F., 1986. "The interactive effects of task complexity and participation on task performance: A field experiment," Organizational Behavior and Human Decision Processes, Elsevier, vol. 38(2), pages 162-180, October.
    7. Earley, P. Christopher & Kanfer, Ruth, 1985. "The influence of component participation and role models on goal acceptance, goal satisfaction, and performance," Organizational Behavior and Human Decision Processes, Elsevier, vol. 36(3), pages 378-390, December.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Macinati, Manuela S. & Rizzo, Marco G., 2014. "Budget goal commitment, clinical managers’ use of budget information and performance," Health Policy, Elsevier, vol. 117(2), pages 228-238.
    2. Nava Subramaniam & Neal M. Ashkanasy, 2001. "The Effect of Organisational Culture Perceptions on the Relationship Between Budgetary Participation and Managerial Job-Related Outcomes," Australian Journal of Management, Australian School of Business, vol. 26(1), pages 35-54, June.
    3. Agbejule, Adebayo & Saarikoski, Lotta, 2006. "The effect of cost management knowledge on the relationship between budgetary participation and managerial performance," The British Accounting Review, Elsevier, vol. 38(4), pages 427-440.
    4. Chong, Vincent K. & Eggleton, Ian R.C. & Leong, Michele K.C., 2005. "The impact of market competition and budgetary participation on performance and job satisfaction: a research note," The British Accounting Review, Elsevier, vol. 37(1), pages 115-133.
    5. Parker, Robert J. & Kyj, Larissa, 2006. "Vertical information sharing in the budgeting process," Accounting, Organizations and Society, Elsevier, vol. 31(1), pages 27-45, January.
    6. Macinati, Manuela S. & Bozzi, Stefano & Rizzo, Marco Giovanni, 2016. "Budgetary participation and performance: The mediating effects of medical managers’ job engagement and self-efficacy," Health Policy, Elsevier, vol. 120(9), pages 1017-1028.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Staci A. Kenno & Michelle C. Lau & Barbara J. Sainty, 2018. "In Search of a Theory of Budgeting: A Literature Review," Accounting Perspectives, John Wiley & Sons, vol. 17(4), pages 507-553, December.
    2. Pascal Langevin & Gérald Naro, 2003. "Controle Et Comportements : Une Revue De La Litterature Anglo-Saxonne," Post-Print halshs-00582794, HAL.
    3. manuela S. Macinati & Marco G. Rizzo & Gianluca D'Agostino, 2014. "Partecipazione al processo di budget, accuratezza e utilit? delle informazioni di budget e performance. I risultati di un caso studi," MECOSAN, FrancoAngeli Editore, vol. 2014(92), pages 55-75.
    4. Shu, Wei & Chen, Ying & Chen, Xuejiao, 2023. "Information technology empowerment and corporate budget control: Evidence from China," Pacific-Basin Finance Journal, Elsevier, vol. 82(C).
    5. Parker, Robert J. & Kyj, Larissa, 2006. "Vertical information sharing in the budgeting process," Accounting, Organizations and Society, Elsevier, vol. 31(1), pages 27-45, January.
    6. O'Connor, Neale G., 1995. "The influence of organizational culture on the usefulness of budget participation by Singaporean-Chinese managers," Accounting, Organizations and Society, Elsevier, vol. 20(5), pages 383-403, July.
    7. Adrien Bonache & Jonathan Maurice & Karen Moris & Irène Georgescu, 2009. "Enseignements d'une meta-analyse sur le lien participation budgétaire - performance managériale," Post-Print halshs-00460130, HAL.
    8. Wiersma, Eelke, 2017. "How and when do firms translate slack into better performance?," The British Accounting Review, Elsevier, vol. 49(5), pages 445-459.
    9. Marco Giovanni Rizzo, 2014. "La relazione tra il livello di coinvolgimento nel processo di budget, il commitment verso gli obiettivi, la soddisfazione lavorativa e i relativi risvolti sulla performance manageriale. I risultati di," MANAGEMENT CONTROL, FrancoAngeli Editore, vol. 2014(1), pages 9-34.
    10. repec:ers:ijebaa:v:v:y:2017:i:1:p:83-99 is not listed on IDEAS
    11. Nava Subramaniam & Neal M. Ashkanasy, 2001. "The Effect of Organisational Culture Perceptions on the Relationship Between Budgetary Participation and Managerial Job-Related Outcomes," Australian Journal of Management, Australian School of Business, vol. 26(1), pages 35-54, June.
    12. Markus Glaser & Florencio Lopez-De-Silanes & Zacharias Sautner, 2013. "Opening the Black Box: Internal Capital Markets and Managerial Power," Journal of Finance, American Finance Association, vol. 68(4), pages 1577-1631, August.
    13. Christian Daumoser & Bernhard Hirsch & Matthias Sohn, 2018. "Honesty in budgeting: a review of morality and control aspects in the budgetary slack literature," Journal of Management Control: Zeitschrift für Planung und Unternehmenssteuerung, Springer, vol. 29(2), pages 115-159, August.
    14. Baxter, Jane & Carlsson-Wall, Martin & Chua, Wai Fong & Kraus, Kalle, 2019. "Accounting and passionate interests: The case of a Swedish football club," Accounting, Organizations and Society, Elsevier, vol. 74(C), pages 21-40.
    15. R. Murray Lindsay, 1994. "Publication System Biases Associated with the Statistical Testing Paradigm," Contemporary Accounting Research, John Wiley & Sons, vol. 11(1), pages 33-57, June.
    16. Domenico Raucci & Manuela Paolini, 2022. "Informazioni budgetarie e prospettive di Behavioral Management Accounting nelle aziende sanitarie pubbliche italiane," MANAGEMENT CONTROL, FrancoAngeli Editore, vol. 2022(2), pages 117-139.
    17. Tuan Zainun Tuan Mat* & Nur Shahirah Adilah Mohd Sairazi & Fadzlina Mohd Fahmi & Sharifah Nazatul Faiza Syed Mustapha Nazri & Sharina Tajul Urus, 2018. "Determinants of Budgetary Slack Creation: A Study in Malaysian Local Authorities," The Journal of Social Sciences Research, Academic Research Publishing Group, pages 1040-1050:5.
    18. Van der Stede, Wim A., 2000. "The relationship between two consequences of budgetary controls: budgetary slack creation and managerial short-term orientation," Accounting, Organizations and Society, Elsevier, vol. 25(6), pages 609-622, August.
    19. Luft, Joan & Shields, Michael D., 2003. "Mapping management accounting: graphics and guidelines for theory-consistent empirical research," Accounting, Organizations and Society, Elsevier, vol. 28(2-3), pages 169-249.
    20. repec:arp:tjssrr:2019:p:173-183 is not listed on IDEAS
    21. Jermias, Johnny & Setiawan, Trisnawati, 2008. "The moderating effects of hierarchy and control systems on the relationship between budgetary participation and performance," The International Journal of Accounting, Elsevier, vol. 43(3), pages 268-292, September.
    22. Langevin, Pascal & Mendoza, Carla, 2013. "How can management control system fairness reduce managers’ unethical behaviours?," European Management Journal, Elsevier, vol. 31(3), pages 209-222.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:taf:acctbr:v:27:y:1996:i:1:p:41-50. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/RABR20 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.