Research On Influence Factors Of Enterprise Budgetary Slack

Due to its multifunctional properties and wide range of applications, budgetary slack, or so-called ill of budget, has been the focus of academic research at home and abroad. During economic prosperous time, enterprises maybe pay little attention to budget. However, as the economic growth speed decreased since 2013, the function of budget gets the stage to show. This puts forward higher requirements to the budget management, and higher standards for the quality of the budget. The emergence of the budgetary slack, reduces the accuracy of the budget, limits the function of the allocation of resources, and has affected the management and development of the enterprise. Therefore, it is urgent to find out the essential factor and seek the counter-measure to control the opportunism behavior-budgetary slack. The study of the influence factors of budgetary slack is based on different theoretical basis throughout the academic decades. The results are rich but complicated. In this context, the demand of a systemic summary and analysis of factors of budgetary slack continues to increase. In view of this, this paper chooses the topic of influence factors of budgetary slack.Using fraud triangle theory for reference, the paper attempts to reclassify the several theoretical research results and integrate these factors into one model for in-depth analysis and summary. With the valid empirical test and the results of the study, countermeasures and suggestions will be launched to guide enterprises deal with budgetary slack under the background of "new normal "economic development.The empirical results show that:Firstly, when the management is over-confident, the possibility of budgetary slack behavior is low. Secondly, the more frequent the management change, the higher the probability of the budgetary slack occurs. Thirdly, environmental uncertainty provides the room for the budgetary slack. Fourth, the factor of nature of enterprise or enterprise diversification is singly correlated to the budgetary slack. Fifth, with other factors, budget ratchet can significantly lower the occurrence of budgetary slack.