The Effects of Environmental Uncertainty and Budgetary Control Effectiveness on Propensity to Create Budgetary Slack in Public Sector

African Journal of Business Management, Vol. 5, No. 22, pp. 8902-8908, September 2011

7 Pages Posted: 21 Oct 2011 Last revised: 27 Dec 2011

See all articles by Emine Yilmaz

Emine Yilmaz

Istanbul Medeniyet University

Gökhan Özer

Gebze Technical University

Date Written: September 30, 2011

Abstract

This study examines the relationship among environmental uncertainty, effectiveness of budgetary control and propensity to create budgetary slack in public organizations. For this purpose, the data collected from 460 public organizations’ managers via questionnaire. Results of analyses show that negative and statistically significant relationship is found between environmental uncertainty and effectiveness of budgetary control and between effectiveness of budgetary control and propensity to create budgetary slack. However, environmental uncertainty has statistically significant and positive impact on propensity to create budgetary slack. It is also found that budgetary control has partial mediation effect on the relationship between environmental uncertainty and propensity to create budgetary slack.

Keywords: Budgetary Slack, Effectiveness of Budgetary Control, Environmental Uncertainty, Public Organization

JEL Classification: M40, M41, M42, L20, L30

Suggested Citation

Yilmaz, Emine and Özer, Gökhan, The Effects of Environmental Uncertainty and Budgetary Control Effectiveness on Propensity to Create Budgetary Slack in Public Sector (September 30, 2011). African Journal of Business Management, Vol. 5, No. 22, pp. 8902-8908, September 2011, Available at SSRN: https://ssrn.com/abstract=1946565

Emine Yilmaz (Contact Author)

Istanbul Medeniyet University ( email )

D-100 Karayolu
Merdivenkoy Mevkii No:6/1 Goztepe/Kadıkoy
Istanbul
Turkey

HOME PAGE: http://www.medeniyet.edu.tr/

Gökhan Özer

Gebze Technical University ( email )

Cayirova-Gebze
Kocaeli, Istanbul 41400
Turkey

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