Research On The Influencing Factors Of Budget Slack In Manufacturing Enterprise Budget Management

As an important part of enterprise financial management,budget management has very important practical value and significance for improving the operation of internal management control and promoting the improvement of corporate financial management efficiency.Budget slack is not only an important part of corporate budget management,but also one of the difficult issues.The budget slack will obviously lead to the poor performance of the enterprise budget management.At the same time,it can not fully reflect the actual financial situation of the enterprise.Seriously,the financial efficiency of the enterprise will be low,the profit will fall,and the normal business activities of the enterprise will be affected.Therefore,it is very important to explore the influencing factors and reasons of budget slack.The problem of budget slack is a comprehensive and complex situation,which is the result of the internal and external environment of the enterprise.This paper focuses on the factors affecting the budget slack of listed companies in China’s manufacturing industry,and focuses on the corporate governance level while comparing the external environment.Analyze the scientific and technological type and traditional manufacturing enterprises,and combine the domestic and international environment of China’s science and technology manufacturing industry,and pay more attention on corporate governance and external environment of corporate financial management.This paper is divided into five parts.The first part mainly elaborates the background and research significance of this paper,as well as the research ideas and innovations of this paper.The second part is mainly about the concept of budget relaxation and related theoretical basis,including the principal agent.Theory,incentive theory,behavior theory,and contingency theory.The third part mainly introduces the analysis of the mechanism of principal-agent theory,incentive theory,behavior theory and contingency theory on budget slack,and the harm caused by excessive budget slack.The fourth part is the empirical analysis.Through the introduction of the previous theory,it puts forward reasonable assumptions and designs the model.It selects 810 valid samples from the listed companies of the manufacturing enterprises from 2013 to 2017 for multiple linear regression analysis,and compares the scientific and technological types with the traditional manufacturing enterprises.Data characteristics,then classify their data by year,select data for 2015-2017 for robustness testing,and perform longitudinal comparative analysis.The main content of the fifth part is the conclusion and the shortcomings and prospects.The empirical results show that there is a positive correlation between equity concentration and budget slack;there is a positive correlation between budget slack and agency cost;there is a negative correlation between budget slack and equity incentive;there is obvious a positive correlation between budget slack and manager’s pay.Significant relationship;enterprises led by female executives are more prone to budget slack;the higher the uncertainty of the external environment,the more likely the company is to experience budget slack,which is more obvious in technology-based manufacturing enterprises.