• The Journal of Asian Finance, Economics and Business
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• v.8 no.8
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• pp.355-363
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• 2021

This study aims to obtain empirical evidence about the cognitive effect of Islamic religiosity and budget control in reducing budgetary slack behavior. This study involved 176 managers as respondents in 10 local companies in Eastern Indonesia. Managers who are respondents in thus study work and are spread across 14 provinces in Indonesia. Probability sampling method has been used for this study from the total population with certain criteria. Data analysis has been done using Warp PLS-SEM technique. The results showed that Islamic religiosity cognitive and budget control had a direct negative effect on budgetary slack behavior. The two variables also fully mediate the relationship between participatory budgeting and budget-based compensation schemes on the behavior of budgetary slack in a negative and significant way. These results mean that the two variables are proven to reduce budgetary slack behavior. This empirical evidence at the same time corrects the agency theory's assumptions about opportunistic human nature and always maximizes every potential economic profit. In addition, the results also show that Islamic religiosity cognitive is stronger in reducing budgetary slack behavior. These results can be used to improve the company's budget control system by incorporating elements that motivate religious goals so that it is more effective in reducing budgetary slack behavior.

• Journal of the Korea Academia-Industrial cooperation Society
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• v.19 no.2
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• pp.405-412
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• 2018

The budget is an essential tool for the systematic management of the organizational performance and for diagnosing the status of an organization. Effective budget execution is important to hospital management due to the nonprofit nature of hospitals. On the other hand, there are few studies regarding the budgetary slack of hospitals in Korea. The purpose of this study was to investigate the effects of the university hospital budgeting system characteristics on the budgetary slack. For this purpose, the data from 118 staff of a university hospital located in Seoul were collected by self-administered surveys. Frequency analysis, correlation analysis, and multiple regression analysis were carried out using Stata Ver. 14. The main results of this study were as follows. First, information asymmetry has a positive influence on the budgetary slack. Second, budget feedback and budget motivation have a negative effect on the budgetary slack. These findings suggest that the sharing of budget-related information among hospital staff is important for efficient hospital management. In addition, it is necessary to establish ways to enhance the feedback and motivation in budgetary activities for managing the budgetary slack systematically. The major strength of this study is that it draws attention to research concerning the budgetary slack of hospitals in the absence of research on the budgetary slack. The significance of this study was to provide an empirical basis for improving the efficiency of hospital management.

• Journal of the Korea Convergence Society
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• v.8 no.11
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• pp.343-352
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• 2017

In this study, the empirical analysis was conducted if the authentic leadership, which recently became an issue as an alternative of leadership, plays the moderating role in the relation between the participative budgeting and the budgetary slack. The hypotheses was established based on the literature review and the results of preceding studies in accordance with the scientific research procedure and the questionnaires were collected from the commissioned officers in charge of financial businesses in the military organization. Out of 200 questionnaires collected, 180 questionnaires were used for final empirical analysis excluding incomplete questionnaires. The summary of the research results shown through the regression analysis is as follows. First, the participative budgeting has positive(+) effect on the budgetary slack. Second, The authentic leadership plays the moderating role in the relation between the participative budgeting and the budgetary slack.