Research On The Relationship Of Budgetary Slack With Goal Setting Theories And Its Governance

Budget management is one of the most important modern management models.It has been widely utilized by and popularized with more and more Chinese enterprisers.By means of organizing,planning,Performing,feedback,reporting and evaluating, a dynamic comprehensive control system will be formed to coordinate the internal departments and entities of the company so as to realize its whole strategic and operational targets.Budget management contributes to the improvement of the company’s management and economic effectiveness. However, in budget management practice,ubiquitous budgetary slack has a certain effect on the operation of budget management.In budget management practice of our large state-owned enterprises, budgetary slack is quite prominent.The budget slack is harmful or not? What are the influencing factors of budgetary slack? Is budgetary slack related to definition of the budget targets difficulty of the budget target、budget participation or information asymmetry?This paper puts forward relevant research hypotheses on the basis of theoretical and logical analyses and researches,through empirical study, the relationship of budgetary slack with definition and difficulty of the budget targets in the situation of budget participation and information asymmetry.XXX companies are chosen as research objects subjected to questionnaire surveys. Through the application of factor analysis and multiple regression method,the findings indicate that definition of the budget targets difficulty of the budget target,budget participation and information asymmetry all have an effect on budgetary slack according to the data from 140 valid questionnaires after getting rid of invalid data. Definition of the budget targets and budgetary slack are negatively related while difficulty of the budget target and budget participation and information asymmetry respectively are positively related to budgetary slack.Finally, on the basis of empirical analysis,the paper put forward some steps and suggestions to control the budgetary slack behavior, reveals the shortcomings of the article and demonstrates the future development directions.