Information technology empowerment and corporate budget control: Evidence from China

Wei Shu, Ying Chen and Xuejiao Chen

Pacific-Basin Finance Journal, 2023, vol. 82, issue C

Abstract: This study uses revenue budget data to examine the relationship between information technology (IT) and corporations' budget control activities. The results show that investment in IT has a significant impact on corporations' budgeting behavior in that it reduces budget slack, so it can improve budget-control activities, particularly in non-state-owned corporations. We conclude that IT can regulate revenue budgeting by empowering corporations' management, specifically by alleviating demands for information and improving the efficiency of internal collaboration on resource use. The paper provides a new view of corporations' budget management behavior from the perspective of IT empowerment and internalizes the application of IT in decision-making processes related to corporate budget management.

Keywords: Information technology; Budget control; Budgetary slack (search for similar items in EconPapers)
Date: 2023
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Persistent link: https://EconPapers.repec.org/RePEc:eee:pacfin:v:82:y:2023:i:c:s0927538x23002020

DOI: 10.1016/j.pacfin.2023.102131

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