Research On The Factors And Governance Of Budget Slack In A Company

Comprehensive budget management is an important part of the daily management of modern companies.In the process of promotion in China,due to the lack of application experience and imperfect budget system,budget management tools can not fully play their due role.Budget slack is one of the main problems,and it is ubiquitous in the budget management of various industries and industries.The large deviation between the budget arrangement caused by budget slack and the actual operation of the company not only causes problems for the company's daily management,but also affects the company's market competitiveness and development strategy.Since 2011,Company A has started to improve budget management.Through several years of practice,Company A's budget management has made considerable progress,but the problem of budget slack is still serious.The existence of budget slack is not only affect the coordination between departments of A company,reducing operational efficiency,but also inhibiting the incentive and constraint function of budget management and reducing the efficiency of resource allocation of the company.Therefore,it is necessary to analyze the cause of the company's budget slack and make targeted recommendations.This paper first reviews the concepts,influencing factors,economic consequences and governance of budget slack at home and abroad.Then,from the perspectives of agency theory,contingency theory and behavioral science theory,the causes of budget slack are analyzed in detail.Then,through the analysis of budget management process and budget execution,the problems in budget management of company A are found out,and the budget for company A is designed accordingly.The relaxation questionnaire was used to retrieve 149 questionnaires.The multiple regression equation model was used to analyze the data of the questionnaire,and finally the factors affecting the budget relaxation of Company A were confirmed.From the data analysis results,the budget emphasis,budget participation,information asymmetry and ratchet effect were observed.There is a positive impact on budget slack,with the ratchet effect having the greatest impact.Finally,based on the conclusions of the research,the article combines the budget management of Company A and puts forward some suggestions.Reduce the ratchet effect by improving the budget target setting method and income distribution mode;reduce the budget emphasis by enriching the evaluation indicators;improve thebudget participation system through the diversification of budget participants;and strengthen the internal information accuracy by strengthening internal audit and supervision.