The Research On Relationships Between External Competition, Environmental Uncertainty And Budget Slack

Budget is one of the most widely used and a traditional management control means and how to make this control means which better play a role in its own region has been become an important content in management control. Although budget management in each enterprise has been widely used in business management practice, but we seldom see that there is successful model of enterprise budget management practice. As the further study to the corporate management mechanisms, more and more scholars think that competition is an important part of the corporate management mechanisms. It is also a worthy question in present research that contacting External competition to the internal control which could bring about more effectiveness on internal control. About the Environmental Uncertainty, scholars have the depth research on environmental uncertainty and budget participation and other relative domain. Therefore, this paper researches the relationships between External competition, Environmental Uncertainty and Budget Slack.From the present document we can see that Scholars mainly considering budget slack from budget itself,budget functions,internal budget and so forth. Firstly, this paper has summarized the budget management,budget slack,external competition,environmental uncertainty and the basis of budget slack and reviews situation of study of the budget slack,external competition,environmental uncertainty. In this basis of study, made further study of exterior competition and environmental uncertainty's evaluation criteria, the present situation and the influence factors, motives for environmental uncertainty and according to its content, environmental uncertainty is divided into external environmental uncertainty and internal environmental uncertainty two types. Secondly, this paper is trying to use the approach of empirical research to confirm that external competition and environmental uncertainty has effect on budget slack .Empirical evidence shows that Competition is fierce, the budget was lower. The more uncertainty of environment will bring the slacker on budget.