Budgetary Slack：an Empirical Research Based On The Relationship Between Zero-based Budgeting And Environmental Uncertainty

Budget as a management control tool,derived from companies such as DuPontand General Motors in the1920s,later it played a significant role in management, and hasbeen widely disseminated. Despite there are frequent criticism of the budget，but the budget isstill the most widely used management controls. Budget management practice play a positiverole in administrative control of various enterprises, from the early1980s, it has gonethrough nearly30years in China. Budgetary slack is an opportunistic behavior of Personsresponsible for budget, is one common problem of budget management. Similar to thebudget management practices of Western countries, budgetary slack problem is prominentin China’s enterprises. At present, in the country, whether theory community the practicedepartments, Mainstream take the zero-based budgeting as the best budget mode. What causescompanies choose zero-based budgeting? Whether it related to Environmental uncertainty?China’s enterprises in the implementation of zero-based budgeting will suppress budgetaryslack?Therefore, on the basic of summarizing the research literature at home and abroad，using the combination of theoretical analysis and historical analysis, combining EmpiricalAnalysis and Normative analysis. Firstly, we verify that Environmental uncertainty has apositive relationship with the zero-base budget, the higher of Environmental uncertainty, themore we choose use zero-based budgeting. Secondly, we verify that zero-based budgetingwill suppress budgetary slack. When an enterprise uses zero-based budgeting approach， thedegree of budgetary slack will be reduced. Thirdly, we verify that the implementationof zero-base budget will weaken the impact of environmental uncertainty on budgetary slack.The suppression of zero-based budgeting is greater than environmental uncertainty on theimpact of budgetary slack. Therefore，the higher of Environmental uncertainty，the more wechoose use zero-based budgeting to reduce the level of budgetary slack. Therefore, weexamine the reason of the implementation of the zero-based budgeting and the Specific effectsof the implementation in China’s enterprises, make a contribution to the implementationand improvement of zero-base budgeting in the business.In this study, as the questionnaire design， questionnaire distribution and collection,sample selection, sample size, statistical error and other factors, cause limitations of thisarticle, which is a problem needs to solve in the future research.