A Research On The Relation Between Attainability Of Goals And Budgetary Slack

From the early 80s of the 20th century, China's budget management has practiced nearly 30 years ,especially in the last few years, in the support and encouragement of our State Economic and Trade Commission and the Ministry of Finance, Most large state-owned enterprises have implemented a budget management, and achieved a very important experience (Yu Zengbiao, 2006).Budget as a very important tool of management control, mainly play the following two roles, The first is act not only as the budget standard of performance evaluation, but also as the main basis for calculating performance pay for the achievement of budget targets; The second is the role of planning, Through the budget optimizing to the allocation of resources, to achieve organization's strategic goals (Chow, Cooper, Weller, 1988). Although many researches which appear on criticism of budget management, budget is as one of the most widely used management control, and played a very active role in various management control of large enterprises. There is a prevalent relaxation in budgetIn our country large state-owned enterprises'budget management practice, the problem of prevalent relaxation in budget is very prominent .Especially in China's state-owned enterprises. Whether Budget slack is harmful or not? Budget holders create budget slack is for their own interests or in response to environmental uncertainty? At present a large number of scholars study the problem of budget slack is based on several theoretical perspectives: Agency Theory, Contingency Theory, Behavioral Science Theories, Game Theory, but which theory is more reasonable explanation for the budget slack?In this paper ,using 250 companies (2 points per unit of the questionnaire) as study object, remove invalid data, and finally according to data from 369 valid questionnaires, using statistical software spss17.0 statistical analysis,, his study found: the agency cost theory and behavioral science theory has explanatory power budget slack; Overall, attainability of goals , budget participation and information asymmetry will have an impact on the budget slack.。There is a empirical evidence based on participation and Information and asymmetry to relation between attainability of goals and budgetary slack。Empirical results show a significant negative correlation between the attainability of goals and budge slack, showed budge participation and Information asymmetry and budget slack is positively related. Final on the basis of empirical analysis, the paper put forward corresponding suggestion.