Background Characteristics Of The Senior Management Team And Corporate Budgeting Preparation Slack

Budget as a means of internal control was first produced in the1920s GM and DuPontand other large companies,,and quickly get a wide range of commercial and industrialapplications.To in recent years, with the rapid development of information technology,computer technology and applications, especially with the effective integration of newmanagement methods such as balanced scorecard, activity-based costing, more effectivelyplay the budget as an internal control means in the allocation of resourcesimportant role.However, in the process of budget preparation and implementation, the widespread presenceof budgetary slack behavior likely to reduce the budget management should play a role in theallocation of corporate resources, which is not conducive to the development of enterprises.Hambrick and Mason in1984put forward innovative high-order echelon theory model of itsresearch, the basic premise of bounded rationality into its research, the basic characteristics ofthe senior management, corporate strategic decision-making, organizational performancecategory, and the demographic characteristics of the high-level managers can better representtheir cognitive, thus affecting the strategic selection and behavior, thereby affecting theperformance of the enterprise. Based on this, we believe that the relaxation behavior of seniormanagers and corporate budgeting process should be there is some connection.Based on the research literature before combing, combined with high-level echelontheory, the six hypotheses manufacturing enterprises in Shanghai and Shenzhen A-share,through the establishment of a multiple linear regression model, an empirical test, andvalidation of the senior management team.relevant demographic characteristics of enterpriseBudgeting relaxation behavior of a certain impact and draw the following three conclusions:the longer the term of the senior management team, the more it can inhibit the relaxationbehavior of the corporate budget process; higher the average level of education of the seniormanagement team, the more it can inhibit the corporate budgetingrelaxation behavior in theprocess; financial professional background and experience in the senior management team,the higher the proportion of the more able to inhibit the relaxation behavior in the budgetingprocess. So this research breakthrough research perspective based on commission agents andother related theories, so that we can more angles to get to know the impact factors of therelaxation behavior in the budgeting process, in order to better improve budget preparation,and thus betterplay the role of the budget management of the internal control means in theallocation of resources.