The Study On Factors Influencing Budgetary Slack:Based On Ethical Decision-Making Model

Budget management plays a role of efficiency improvement and resource allocation in the enterprise management and control, but budgetary slack which limits its function needs to be solved urgently in the enterprise. The present study mainly focuses on behavioral motivation of budgetary slack, but lacks research on personal psychological mechanism which results in budgetary slack. The occurrence of budgetary slack behavior is a ethical decision-making process essentially, and individual’s ethical decision making will affect the budgetary slack behavior.From the perspective of individual’s ethical decision making, the thesis establishes ethical decision-making model in budgetary environment and studies how moral mechanism influences budgetary slack. Combining with present study of ethical decision making, the influence that the moral intensity, the individual’s moral ideology and budgetary emphasis have on ethical decision-making process is taken into account. The results of empirical study show that the various stages of ethical decision-making process of budgetary participant are significantly relevant and that moral awareness, moral judgment and moral intent reduce the budgetary slack behavior; The moral intensity affects budgetary slack behavior only through moral awareness, judgment and intent; The idealistic moral ideology affects budgetary slack behavior only through the moral intensity, awareness, judgment and intent, but the relativistic moral ideology also has a direct influence on budgetary slack behavior; Budgetary emphasis leads to the occurrence of budgetary slack behavior directly, but moral awareness, judgment and intent will reduce budgetary slack behavior caused by budgetary emphasis.Conclusion supports that budgetary participant has a psychological process of ethical decision making before occurrence of budgetary slack behavior. The moral mechanism plays a role through ethical decision-making process. It is suggested that corporate adopts moral training of cognitive rules, makes moral assessment insert into performance evaluation, builds moral standards and moral culture and improves moral decision making of budgetary participants in budget management, which makes budgetary participants decrease the behavior of budgetary slack consciously.