Effects of Procedural Justice Perception, Budgetary Control Effectiveness and Ethical Work Climate on Propensity to Create Budgetary Slack
Business and Economics Research Journal, Vol. 2, No. 4, pp. 1-18, 2011
18 Pages Posted: 19 Oct 2011
Date Written: October 19, 2011
Abstract
Because of the increasing importance of effective and productive management of public organizations, budgetary slack is started to be seen as an important problem for public organizations. In order to contribute the solution of this problem, the current study investigates the effects of budgetary control effectiveness, ethical work climate and managers’ procedural justice perception on propensity to create budgetary slack in pubic organizations. The data is obtained through questionnaire responded by 465 managers who work in different public organizations. The results of the analyses show that effectiveness of budgetary control, ethical work climate and procedural justice perception of managers have a statistically significant and negative impact on managers’ propensity to create budgetary slack in public organizations. Budgetary control and ethical work climate affect managers’ perception of procedural justice. In addition, it is inferred from the study that the perception of procedural justice has partial mediation effect between effectiveness of budgetary control, ethical work climate and propensity to create budgetary slack.
Keywords: Budgetary slack, Budgetary control, Procedural justice, Ethical work climate, Public organizations
JEL Classification: M40, M41, M42, L20, L30
Suggested Citation: Suggested Citation
Do you have a job opening that you would like to promote on SSRN?
Recommended Papers
-
Asian Management Research: Status Today and Future Outlook
By Garry D. Bruton and Chung-ming Lau
-
Participative Leadership by American and Chinese Managers in China: Role of Relationships
By Dean Tjosvold and Yi Feng Chen
-
By Wei-ping Wu
-
By C. Lakshman and Ronaldo C. Parente
-
By Andrew Li and Russell Cropanzano
-
East Meets East and East Meets West: The Case of Sino-Japanese and Sino-West Joint Ventures in China
By Ji Li, Leonard Karakowski, ...
-
Political Skill, Supervisor–Subordinate Guanxi and Career Prospects in Chinese Firms
By Li-qun Wei, Jun Liu, ...
-
Relationship Investment and Channel Performance: An Analysis of Mediating Forces
By Yadong Luo, Yi Liu, ...
