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Elements and success factors for an efficient budgeting

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  • Kunnathuvalappil Hariharan, Naveen

Abstract

A well-crafted efficient budget is believed to lead to an optimal financial performance. This research investigated the elements and critical determinants of efficient budgeting. We outlined how an efficient budget can lead to an optimal financial performance. By investigating the theoretical linkage between budgeting and financial performance, we found that there are five channels through which an efficient budgeting leads to an optimal financial performance. The channels are: a) communication and coordination b) motivator c) evaluation and control of performance d) goal Orientation e) cost awareness.

Suggested Citation

  • Kunnathuvalappil Hariharan, Naveen, 2019. "Elements and success factors for an efficient budgeting," MPRA Paper 109507, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:109507
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    References listed on IDEAS

    as
    1. Mareike Bergmann & Christian Brück & Thorsten Knauer & Anja Schwering, 2020. "Digitization of the budgeting process: determinants of the use of business analytics and its effect on satisfaction with the budgeting process," Journal of Management Control: Zeitschrift für Planung und Unternehmenssteuerung, Springer, vol. 31(1), pages 25-54, April.
    2. Rose, Timothy & Manley, Karen, 2011. "Motivation toward financial incentive goals on construction projects," Journal of Business Research, Elsevier, vol. 64(7), pages 765-773, July.
    3. Susumu Ueno, 2000. "Culture and Budget Control Practices: A Study of Manufacturing Companies in U.S.A. and Japan," World Scientific Book Chapters, in: Japanese Cost Management, chapter 21, pages 461-482, World Scientific Publishing Co. Pte. Ltd..
    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.
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    More about this item

    Keywords

    Budgeting; Efficiency; Goal Orientation; Cost awareness;
    All these keywords.

    JEL classification:

    • G0 - Financial Economics - - General
    • G10 - Financial Economics - - General Financial Markets - - - General (includes Measurement and Data)

    Statistics

    Access and download statistics

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