 Budgeting—the Role of Trust and Participation: A Research NoteChong M. Lau and Christen Buckland Abacus, 2001, vol. 37, issue 3, 369-388 Abstract: Prior studies have found a combination of an evaluative style with high budget emphasis and high participation to be associated with better behavioural outcomes (e.g., lower job‐related tension) than all other combinations of budget emphasis and participation. Yet there has been little research to investigate the theory on why this particular combination of budget emphasis and participation is associated with better behavioural outcomes. A path analytical model, which investigates the intervening effects of trust and participation on the relationship between budget emphasis and job‐related tension, was used. Senior Norwegian managers were selected as subjects for this study. The results indicate that budget emphasis has an insignificant direct effect on job‐related tension but a strong indirect effect through trust and participation. Trust also has an intervening effect on the relationship between budgetary participation and job‐related tension. It is therefore possible to conclude that high budget emphasis is associated with high budgetary participation and high trust. High trust, in turn, is associated with reduced subordinates’ job‐related tension. Date: 2001 Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:bla:abacus:v:37:y:2001:i:3:p:369-388 Ordering information: This journal article can be ordered from Access Statistics for this article Abacus is currently edited by G.W. Dean and S. Jones More articles in Abacus from Accounting Foundation, University of Sydney |
Is your work missing from RePEc? Here is how to contribute.
Questions or problems? Check the EconPapers FAQ or send mail to .
EconPapers is hosted by the
School of Business at Örebro University.