Research On The Relationship Between Corporate Performance,Managerial Myopia Behavior And Budget Slack

As a management operation mechanism within the scope of the enterprise,budget management can not only reflect the overall strategic objectives of the enterprise,but also effectively plan,organize,control and evaluate the business activities of the enterprise.With the rapid development of China's economy,although the budget management system is constantly improving with the change of the market,there are still some problems with the management mechanism of modern enterprises in the actual operation process,and the budget slack is one of them.The budget slack behavior violates the strategic goal of the enterprise,causes the enterprise's budget management mechanism to fail,thus causes the enterprise to lose the competitive advantage of the market,reduces the economic benefit of the enterprise,and has an indelible influence on the long-term development of the enterprise.Therefore,This paper based on the theoretical knowledge of principal-agent theory and contingency Theory and selects 49 listed companies in Xinjiang from 2011 to 2016 as the research object,and discusses the relationship between the performance of enterprises,managerial myopia behavior and budget slack by adopting the OLS least-squares model and the random effects model,hoping to provide more abundant ideas for solving the problem of budget slack,so as to perfect the enterprise.It has guiding significance to calculate management system and sustainable development.This article first systematically summarizes the domestic and foreign literature related to corporate performance,managerial myopia behavior and budget slack.Then based on principal-agent theory and contingency theory,and analyzes the relationship between corporate performance,managerial myopia behavior and budget slack.Put forward hypotheses based on previous research results,A sample of companies that disclosed budget data between the listed companies of Xinjiang in China from 2011 to2016.Using the OLS regression,random effects model,and the nature of different companies comparative regression analysis,the following conclusions are drawn:According to the analysis of OLS least squares model and random effects model,there is a significant positive correlation between corporate performance and budget slack;there is a significant negative correlation between managerial myopia behavior and budget slack;the performance of managers under the regulation of managerial myopia behavior and budget slack have a positive correlation shows that the better the company's current operating performance,the more serious the company's budget slack,but the more managers pay attention to short-term interests and short-term investments,will reduce the slackening of the budget,and correspondingly reduce the waste of resources.but when corporate performance is affected by managerial myopia behavior will increase or decrease the influence of the budget slack generated in the same direction.Judging from the regression results of state-owned enterprises,there is a significant positive correlation between corporate performance and budget slack at the 10% level;Managerial myopia behavior and budget slack are significantly negatively correlated at the 5% level;the interaction between the two items and budget slack are a significant positive correlation at the 1% level.From the regression results of non-state-owned enterprises,there is a positive correlation between firm performance and budget slack at the 1% level,and there is a negative correlation between managerial myopia behavior and budget slack and not significant,there is a positive correlation between the interaction items and budget slack but not significant.It can be seen that there is a more general budget slack in Xinjiang listed companies.According to empirical research conclusions,proposals for improving budget slack and managerial myopia behavior are proposed: through the construction of a budget management monitoring system that can more comprehensive monitoring of the budget formulation and implementation process;Improve enterprise performance evaluation system and the implementation of equity incentive policies that can enhance the performance evaluation standards for management and employees,reduce the conflicts of interest between owners and managers,strengthen thesupervision of enterprises of different nature,and formulate appropriate regulatory policies for state-owned and non-state-owned enterprises and encourage them to optimize resource allocation,capital budget management is reasonable,regulate the behavior of managers of budget,and budget slack are tightly controlled.At the same time,the government must also give some policy support to encourage non-state-owned enterprises to actively improve the budget slack and managerial myopia behavior that promote the sustainable development of enterprises.