| With the management accounting continue to strengthen the role of the business process,functions of the budget has been further improved,budget management plays an important role in the integrity constitute the entire management system of accounting.Budget management as an excellent corporate performance management model reflects,for the rational allocation of corporate resources,and performance evaluation of employees and executives appointment and so provides an important basis for promotion and approach.In the management of the operating companies,from each department within the enterprise and then every economic business involves budget,the budget will quantify the behavior of employees,reflecting the real requirements of enterprises,help managers to coordinate,implement the plan,become a guarantee smooth operation of business ties and bridges,but the budget has become an obstacle to cross-relaxation in front of the bridge the budget tool,affecting the normal operation of the functions of the budget,resulting in budget management to advance business processes,during,and after the control of ineffective supervision and tracking in place,thus not conducive to achieving the ultimate objective of the enterprise.Budgetary slack behavior usually occurs in budgeting and budget implementation of the budget process,budget management is responsible or seeking maximum personal interest to overestimate or underestimate the ability of cost behavior,budgetary slack will result in a series of economic consequences,the manipulation of earnings information by more and more scholars pay attention to.Earnings management is the commonly used financial manipulation attempts to whitewash financial report,only foreign disclosure is conducive to the enterprise financial information to stakeholders to cover up their work by mistake or achieve other purposes.This method seems to be carried out within the scope of accounting standards,but in reality with the earnings management is often "distorted" and "structure","misleading"with derogatory meaning of the word,in the accounting data on the "fuss",not only can improve the performance of the financial report,but will make the financial performance of damage.With the development of the methods of performance evaluation and budget directly linked to the business management authority that managers have the motivation to use their power through various means and ways to realize the goal of perfect budget.Jensen(2001)pointed out that there are two main methods:one is the use of manufacturing budget slack in the initial stage of budgeting,namely low objectives to ensure that they can easily reach;another is in the budget goal situation,because once the budget is formulated,can be easily adjusted,only by means of earnings management in the market does not violate accounting standards Under the condition of modified business information to achieve budget targets[1].Thus,the budgetary slack and earnings management there seems to be a substitute relationship between the executive power of budget slack and earnings management will have a certain impact,there is a certain role link between the three.This paper builds the models of executive power,budget relaxation and earnings management based on related theories.The purpose is to empirically analyze the causes of budget slackness and economic results,and obtain theoretical results that are more valuable for solving budget relaxation problems.The final results of an empirical study of the budgetary situation of A-share manufacturing listed companies in Shanghai and Shenzhen in 2014-2016 show that:(1)the executive power has a significant negative effect on budget slack;(2)the budget slack negatively related with earnings management;(3)in the budget goal situation,in order to improve the implementation of executive the extent of the budget target,budget slack is more inclined to choose instead Earnings management.Finally,based on the analysis of the empirical findings,put forward feasible suggestions to control the budget slack for the owners and managers of listed companies from budgeting,control,execution analysis to provide a more effective assessment of the implementation of reference.Also this paper analyzes the shortcomings and limitations of this study,in order to provide direction for future research advisory and executive authority,budget slack and earnings management related fields. |
