Research On The Relationship Between Enterprises Budgetary Slack And Managerial Short-Term Orientation

Budget is a key factor in firm's management control system. Administrator determines the strategic targets of an enterprise, uses all-round and whole-process control and supervision mechanism, promotes the target of enterprise development, improves enterprise's value and competency, realizes enterprise's long-term strategically planning and goal through budgetary management, and budget is an effective method for enterprise home and abroad. With general application of budgetary management, many problems in budget are gradually exposed. Among them very important problem is about budgetary slack which is researched by many scholars abroad. The main research content of the dissertation is the relationship between enterprises budgetary slack and managerial short-term orientation.We establish hypothesizes, used descriptive statistics analysis, correlation, variance analysis and path analysis to test our hypotheses through collecting 144 samples from 270 respondents on the basis of foreign scholars' researches. Main conclusion of this research is as follows:(1) It exists significantly indirect negative relationship between past performance and budgetary slack under budgetary control, and obviously positive relationship between past performance and managerial short-term orientation under budgetary control, and obviously positive relationship between environmental uncertainty and budgetary slack under budgetary control.(2)It exists significantly positive relationship between budgetary participation and managerial short-term orientation, between past performance and managerial short-term orientation, and between budgetary control and managerial short-term orientation under budgetary slack. The main results of this research is different from Wim A.Van der Stede(2000).The research thinks that it exists negative relationship between budgetary slack and managerial short-term orientation, their relationship is not overflowing effect, namely their relationship is not unconsciously indirect effect. Budgetary control affects simultaneously the relationship of budgetary slack and managerial short-term orientation.The main dissertation is listed as follows: rigid budgetary control affects simultaneously the relationship of budgetary slack and managerial short-term orientation. And budgetary participation, past performance and budgetary control not only directly influence budgetary slack, but also together with other factors (e.g.: budgetary slack, environmental uncertainty) affect managerial shot-term orientation.