Political Connection,Management Power And Budgetary Slack

Budget has more than hundred years since the western used it into enterprise's daily management.In the first half of the 20 th century,from the perspective of the government budget,budget and accounting act enacted in the United States,which was an important milestone in the development of budget control thoughts.In China,it was relatively late to use budget management,However,when it was introduced into China in the 1980's.it got rapid development.Since 1999,the number of the implementation of comprehensive budget management system in China continued to grow;In 2010,the ministry of finance jointly with the securities regulatory commission,the national audit office,the China banking regulatory commission,insurance regulatory commission has established the enterprise internal control application guidelines,as the 15 th guide,the comprehensive budget was included.Although the budget tool can help enterprises realize development,the "disorders" in the budgeting tool were never solved,budget slack is still the one of them.Especially in the 21 st century,with the development of the economic and social,the budget management is facing severe challenges,the drivers of budget slack also has a new development.On the premise of certain useful view budget and previous research results,this research adopted the logical positive approach as well as empirical approach to find the relation between political association,management rights,power distance and budget slack,what's more,it also made the further study about the regulation of managerial power in political associated corporation and mediating effect by government interference to provide a new idea for the governance of budgetary slack.In order to test the political association,executive power,power distance and budget slack relationship and the regulating effect of management power and further study,I used shanghai A-share listed companies' budget data from 2008 to 2012 as sample,established a relevant model examined the relationship between the antecedent and budget slack,and on this basis,the management of power regulating effect was verified,the mediation effect of the government may also existed.This study found:(1)Political association of private enterprises is negatively related to the budget slack,and political association in state-owned enterprises with no significant relation between the budget slack.(2)Power distance and budget slack are related.(3)Management power in the different nature of property rights of enterprises will produce different effects,and the choice of different dimensions of management power also have different influence on budget slack.(4)The Power management regulation effect exists in political associated enterprises.(5)Budget slack and corporate performance are related.(6)government mediating effect through budget slack.The research of this paper not only extends the theoretical study on budget slack: the conclusion of this paper may provide a new train of thought of budgetary slack countermeasures,but also provides valuable empirical evidences for the debate about the relationship between budget slack and business performance.Above all,this paper deepens our knowledge and understanding about the impact of the new contingency factors which has been discussed and also has important theoretical significance and practical significance.The conclusion of this paper is not only support the validity of the current reform of state-owned enterprises,but also provides a new train of thought to govern budget slack in different stages.Revelation of this article is:first of all,budget slack should be understood correctly,it is the key to the processing problem of budget slack;Secondly,understand the role of political association correctly so that it can make the enterprise resources more effectively.Thirdly,understand the impact of management power,optimize the corporate governance structure and governance mechanism in a certain extent;At last,positioning the role of government in developing correctly so that it can realize the development of the industry as a whole sense.