Budget Slack Governance Based On The Characteristics Of Budget Goal

Many existing literature had proved that,budget slack behavior is a common phenomenon,these theories given the corresponding solution,mainly explain the theory of contingency theory and agency theory.budget targets run in to opposite directions.That affects the efficiency of the use of the budget management.LF group large scale,have many interests chain,the budget management is relatively complex,in the budget management,budget slack phenomenon is more serious,which creates the elastic explanation space for the management decision-making errors or mismanagement.Meanwhile,this phenomenon will also cause the wrong budget discrepancy,when the huge discrepancy can give a good explanation,the budget slack behavior will affect the performance evaluation's rationality,objectivity and fairness,ultimately influence the realization of the group's overall goal.To reduce the level of budget slack in enterprise organizations,we should find the influencing factors of budget slack behavior,it is an effective method for prevention of budget slack,also the study point of this article.This paper reviews the literature about budget slack behavior domestic and abroad,sorts out the main factors influence the budget slack behavior,mainly are the information asymmetry,budgetary participation,budgetary targets characteristics,budget emphasis and inducing reward scheme.budget slack behavior including "slack" in the process of budget preparing and "slack" in the process of budget implementation two aspects.The article mainly explore and research from "budgeting in the relaxation phenomenon" as a starting point.Articles from angles of the contingency theory,agency theory,goal setting theory detailedly analyzed the reasons of budget slack phenomenon,at the same time,analyzed deeply in multiple perspectives with combination of the LF group's budget management and budget preparing condition.In this paper,designed the questionnaire of budget slack on the basis of literature research,finally get 183 questionnaires back,after,eliminating outliers.This paper use multiple regression equation model on the questionnaire data for statistical analysis,finally find the problems existing in the group in budgeting.According to the results of equation model: the difficulty of the budget goal is an objective impact on budget slack;Budget emphasize also have a great impaction on the budget slack;The higher articulation of budget goal,on the contrary,the lower degree of budget slack creates,showing a negative correlation relationship.More budgetary participation,also leads to the higher the degree of budget slack.Finally,the article on the basis of the research conclusion combine with the LF group's budget management,put forward policy suggestions in comprehensive consideration.it is suggest that the management can be appropriate to reduce the difficulty of the budget targets.The appropriate budget stress can also reduce the level of budget slack,it is recommended that management can establish a diversified evaluation mechanism,reduce the budget the degree of stress.Clear budget targets can reduce the budget execution of psychological mental uneasiness and anxiety degree,thus more thought into the budget implementation,so suggest the top management give the budget target as detailed as possible,accurate to details.