Research On The Influencing Factors Of Enterprise’s Budget Slack

As an important way of management control, budget management has a wide range of effects and plays an important role in enterprise management process. Chinese enterprises come to realize the importance of the budget and spend a lot of resources on the budget management. To standardize enterprise budget management system, our government has also issued a number of policies to guide enterprises to implement the budget management. However, the use of budget management has not greatly improved business performance, on the contrary taken a lot of negative impact to the enterprise, which restricts the development of enterprises. Domestic and foreign scholars found that one of the most important reasons is that the budget process appears relaxation phenomenon. What factors will lead to the appearance of budgetary slack? What kind of relationship exists between them? All of these are worthy of our in-depth research. Currently, scholars mainly use the standard research and questionnaire to analyze the factors affecting the budget slack. Few people are using the listed company’s financ ial data to study the literature. Based on this background, the empirical analys is of the factors affecting the budget slack will be very important.Based on the princ ipal-agent theory, contingency theory, the information asymmetry theory and the research of scholars, I analyze the whole process of budget management to identify factors that generated the budget slack, and tested the relationships among them.This Paper selected data of A-share listed companies in the year from 2011 to 2013 as samples, chose the appropriate financial ind icators to replace the each variable and use statistical software for regression analys is to verify the proposed hypothesis. The results show that: the budget slack is widely happened in our company, and throughout the budget management process. Information asymmetry, environmental uncertainty and the degree of budgetary partic ipation will lead to budget relaxation phenomenon. According to research find ings, this paper proposes steps to reduce slack, which is to strengthen the building of enterprise culture, change the concept of employees on the budget, build a sound business incentives from the budget to the whole process basing on the strategic orientation to develop a reasonable business goals. I hope to give some reference to relevant enterprises.