Enterprise Budget Slack Behavior Causes The Empirical Research

With the rapid development of China’s economy and the globe’s fierce competition,enterprises in China have a general recognition that is the budget management plays animportant role in enterprises’ development, and with the help of government, they activelyintroduce western advanced comprehensive budget management mode, part of them alsohave made the good performance. However, with the deep implementation ofcomprehensive budget, more and more questions are beginning to appear, among them,budgetary slack behavior which is engendered in the enterprise is becoming a commonphenomena. In the process of comprehensive budget, budgetary slack behavior caused bythe budget makers and executors has a bad effect on the enterprise. On the basis of thepredecessors’ classic theory about budgetary slack, taking the psychology theory as theentry point, using the questionnaire, this paper has a preliminary research on the budgetaryslack behavior arousing in the enterprise, on the purpose of exploring measure to reducesuch behavior, which is suitable for Chinese enterprise feature.Comprehensive budget management gives birth to budgetary slack behavior, thisresearch elaborates the meaning and the present situation of comprehensive budget, on thebasis of it, this paper explains the causes of budgetary slack behavior from threeperspectives, and then, analyses how these causes influence the budgetary slack negatively.This research focus on psychology theory which applies to investigate the causes ofbudgetary slack behavior, and these causes can be summarized as seven aspects: locus ofcontrol, budget feedback, role ambiguity, organizational commitment, achievementmotivation, power motivation and autonomy motivation. By using descriptive statistics, theimplementation circumstance of comprehensive budget management and the real causes ofbudgetary slack behavior can be described clearly. By using empirical research method,multiple regression method, such seven causes has a relation with budgetary slack behavior.In the end, this paper proposes the measures how to restrain the budgetary slack behavior,at the aim of improving the comprehensive budget management system.