A mixed methods study of influences on perceived budgeting accuracy in UK universities

Paul Cropper and Christopher Cowton

Journal of Applied Accounting Research, 2024, vol. 26, issue 2, 306-332

Abstract: Purpose - The accuracy of budgeting is important to fulfilling its various roles. The aim of this study is to examine perceptions of budgeting accuracy in UK universities and to identify and understand the factors that influence them. Design/methodology/approach - A mixed methods research design comprising a questionnaire survey (84 responses, = 51.5%) and 42 semi-structured, qualitative interviews is employed. Findings - The findings reveal that universities tend to be conservative in their budgeting, although previous financial difficulties, the attitude of the governing body and the need to convince lenders that finances are being managed competently might lead to a greater emphasis on a “realistic” rather than cautious budget. Stepwise multiple regression identified four significantly negative influences on perceived budgeting accuracy: the difficulty of forecasting student numbers; difficulties associated with allowing unspent balances to be carried forward; taking a relatively long time to prepare the budget; and the institution’s level of financial surplus. The interviews are drawn upon to both explain and elaborate on the statistical findings. Forecasting student numbers and associated fee income emerges as a particularly challenging and complex issue. Research limitations/implications - Our regression analysis is cross-sectional and therefore based on correlations. Furthermore, the research could be developed by investigating the views of other parties as well as repeating the study in both the UK and overseas. Practical implications - Implications for university management follow from the four factors identified as significant influences upon budget accuracy. These include involving the finance department in estimating student numbers, removing or controlling the carry forward of unspent funds, and reducing the length of the budget cycle. Originality/value - The first study to examine the factors that influence the perceived accuracy of universities’ budgeting, this paper also advances understanding of budgeting accuracy more generally.

Keywords: Budgeting; Budgeting accuracy; Budgets; Student number planning; Universities (search for similar items in EconPapers)
Date: 2024
References: Add references at CitEc
Citations:

Downloads: (external link)
https://www.emerald.com/insight/content/doi/10.110 ... d&utm_campaign=repec (text/html)
https://www.emerald.com/insight/content/doi/10.110 ... d&utm_campaign=repec (application/pdf)
Access to full text is restricted to subscribers

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eme:jaarpp:jaar-11-2023-0337

DOI: 10.1108/JAAR-11-2023-0337

Access Statistics for this article

Journal of Applied Accounting Research is currently edited by Associate Professor Orthodoxia Kyriacou

More articles in Journal of Applied Accounting Research from Emerald Group Publishing Limited
Bibliographic data for series maintained by Emerald Support ().