The Empirical Research Of The Effect Of The Budget Responsible Personnel’s Risk Preference On Budgetary Slack

Budget management has been widely used in the domestic and foreign enterprises as a set of management and control tool. Since the1990s, positively have impelled in the government, our country enterprise starts generally to take to budget to the management, the budget have already become one of multitudinous enterprise achievement evaluation criteria. When the enterprise managers use the budget completes situation to weigh its subordinate department achievement the standard time, the budget slack behavior is one kind of common phenomenon which in the enterprise exists. The theory circle and the practice circle have made research on the reason of the budgetary slack, and some achievements have been addressed. Many research of the budgetary slack are based on the premise of that the budget responsible are risk neutral, but this assumption is with significant limitations in reality. The decision-makers have obvious individual differences in the attitudes toward risk. The risk preference has an important influence on the decision makers’ behavior. It was found out that risk preference is also an important factor affecting budget slack, thus the study’s ignoring of risk preference would undoubtedly result in the lack of research.So this study has focused on the central issues that the risk preference would affect budgetary slack, from the perspective of humanity based on the theories of psychics and economics, deeply analyzes the effect of pay scheme、risk preference and their joint effect on budgetary slack from the research methods of experiment combined with questionnaire. Based on this, the paper also take risk scene into account, analyze the influence of the risk scene on risk preference and budgetary slack. Through analyzing the data obtained by the experiment, applied descriptive statistics, variance analysis, correlation analysis and regression analysis, the main conclusions of this paper are as follows:1. Compared to slack-inducing scheme, truth-inducing scheme can effectively reduce the budgetary slack problem. But under truth-inducing scheme, the budget responsible personnel will still make budgetary slack.2. No wonder under which pay scheme, the risk-seeking group would make more slack than risk-averse group.3. The joint effect of pay scheme and risk preference would affect budgetary slack.4. The budgetary slack will increase when uncertainty increases, the risk-seeking group would increase more slack than risk-averse group.but the the degree of the increase is different between different risk preference groups. And also the budgetary slack will decrease when the expected profit increases, but the the degree of the decrease is not significantly different between different risk preference groups.