The Experimental Study Of The Impact Of Budgetary Fairness On Budgetary Slack

In China, budget management has gradually been an important system arrangement of enterprises. Because of the strategic, comprehensive, systematic and integrated feature, budget management owns wider recognition in business. In recent years, many domestic enterprises have established the budget management committee and spent massive manpower and physical resource carrying out budget management. However, we rarely find the paradigm that a certain corporation has a successful budgetary experience. The empirical study of Pan Fei and Cheng Ming demonstrated that budgetary slack is a very universal phenomenon in 886 domestic companies which voluntary disclose budget information. Thus, the research of budgetary slack is important not only to theoretical value, but also practical value.Recently, budgetary slack has become the topical point, especially the cause of budgetary slack, which studied together by the theory circle and business circles. Drawing on relevant theories of budgetary slack, this article selects business budgetary fairness as the breakthrough point of the cause of budgetary slack, uses experimental research method, then introduces theories of sociology and psychology which is helpful to reveal the concrete relation between budgetary slack and budgetary fairness, supply some valuable suggestions to the practice about budgetary management at last.This paper has five chapters. The first chapter introduced the research background, the structure and methods of this paper. The second chapter is concluded by reviewing relevant researches. The third chapter describes the relative concepts and theories about budgetary slack and budgetary fairness, which hope to supply necessary theoretical foundation to the parent research. The fourth chapter is mainly experimental study. Firstly, the author proposes four hypothesises based on the others'researches. Secondly, this paper collects data basing on samples of MBA students who have three years work experience at least. Thirdly, the paper use variance analysis and path analysis to discuss the impact of budgetary fairness on budgetary slack. The experiment analysis shows that:①the impact of budgetary target justice in statistics is significant;②budget procedural justice can produce indirect effects of negative correlation on the employees' tendency to create budgetary slack, and trust in managers plays an important role in this process;③Compared to other conditions ,employees in unfair budgetary process and budgetary target show the most budgetary slack, but when the budget process is fair, employees in two levels of budgetary target justice have no obvious difference in budget slack. The fifth chapter sums up conclusions and proposes suggestions concerning the relevant policy. Firstly, business in budgeting process should embody fairness. Secondly, business should build trust model in enterprise culture. Thirdly, it is necessary for business to construct reasonable incentive mechanism which is helpful to improve staffs'sense of justice in the budget implementation process. The end of this paper sums up the innovations and the limits of relevant researches. The main innovations of the paper are as follows: for one thing, the paper breaks through an ordinary rule in researching the relation between budgetary slack and budgetary fairness. For another thing, this paper suggests business build a fair and reasonable budgeting process which set the total budget target from bottom to up and distribute the budgetary target of departments from top to bottom.