Empirical Studies On Effects Of Budget Features On Budget Slack

Budget as a means of management control at home and abroad has been widely used in businesses and organizations. As one of the mechanisms of modern enterprise management, budget management is a series of other management tools which can not be replaced. The most important thing of primary task of budget management budgeting in the budget process is how to determine budget targets. This article from two sides to define the budget target characteristics: One is clarity of goals, and the other one is goal difficulty. At the Goal-setting in the budget, internal communication between the various levels of management is important, which directly benefit the improvement of the budget goal clarity. Uncertainties and budget slack will be reduced at the same time. The more difficulties appear in the budget goals, the more susceptible is to budget slack while managers work to ease their stress and reduce the uncertainty of the budget target. However, the budget slack is a more complex phenomenon, and only put the budget into a more complete and complex system to study, the reduction of budget slack will be possible.Currently the research of budget slack and its influence only focus on one or two sides and the practical value is little. For this reason, the paper reviewed in the research at home and abroad, studied the empirical research from developed countries, collected the information of the middle and senior management all over China, used the software of Eviews and SPSS statistical features of the budget target, analyzed the impaction of communication, reward system and the budget slack.The empirical results show that: good communication and reward system will lead to a clear budget targets; in communication and reward systems, differences in the interpretation of the budget requirements of the higher level, higher the level of budgetary slack; more difficult to budget targets will lead to a higher tendency of budget slack. Finally, empirical analysis based on the theoretical analysis of empirical results and make recommendations accordingly...