Empirical Study On The Influencing Factors Of Budgetary Slack And Its Impact On Company Performance

Budget management is widely used in organizational management activities and is regarded as the cornerstone of management control.But the budgetary slack phenomenon which appears in the budget management is regarded as the main problem which affects the budget management effect.The conclusions of the study on budgetary slack are not yet completely unified.Based on theoretical derivation,this paper takes the annual budget data publicly disclosed by domestic listed companies in Shanghai and Shenzhen from 2015 to 2017 as the sample,and adopts the method of multiple linear regression analysis for empirical analysis.By comparing the design of different variables of budgetary slack,a new method to measure the level of enterprise budgetary slack is put forward.Two kinds of influencing factors and their consequences of budgetary slack are identified.The research shows that the influencing factors of enterprise budgetary slack can be divided into two categories: "agent influencing factors" and "weight changing influencing factors".Agent factors mainly include enterprise size,budget ratchet effect,etc.,both of which are positively correlated with the degree of budget slack.The influencing factors of weight variability are mainly environmental uncertainty which is positively correlated with the degree of budgetary slack.Although there is no significant correlation between the level of budgetary slack and the company's return on assets,profit growth rate and other performance indicators,it is negatively correlated with the level of the completion of the budget target.At the same time,when the level of enterprise budgetary slack matches the organizational strategy,the level of budgetary slack will improve the completion of the budget target.The research holds that enterprises should dialectically treat budgetary slack in budget management.The research results can effectively help enterprises objectively measure and evaluate the degree of budgetary slack,correctly understand and deal with the problem of budgetary slack,so as to help enterprises improve the level of budget management and enhance the effect of budget management.