THE INFLUENCE OF BUDGET PARTICIPATION ON BUDGETARY SLACK WITH ORGANIZATIONAL COMMITMENT AS A MODERATOR VARIABLE (A Study on Performance Sustainability of SOES Bandung)
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Date
2019
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Journal of Advanced Research in Dynamical & Control Systems, Vol. 11, 03-Special Issue
Abstract
The results of the study on the effect of budget participation on budgetary slack were found still inconsistent. This study aimed to examine the effect of budgetary participation on budgetary slack. This study also aimed to determine the ability of organizational commitment moderates the relationship between budgetary participation and budgetary slack. This research was carried out on State-Owned Enterprises in Bandung and data used in this study was obtained by distributing questionnaires to 150 employees who served at the manager level in 10 SOEs in Bandung and was directly involved in drafting the budget. Questionnaires were received back and processed qualify for as much as 104. Collected data is processed using multiple regression analysis with the method of Moderated Regression Analysis. The results and conclusions from this research that budgetary participation and significant positive effect on budgetary slack. Organizational commitment has a positive and significant relationship to budgetary slack. While the organization's commitment and significant negative effect on the relationship between budgetary participation and budgetary slack. The suggestion is a company must be give more attention on organizational commitment because it is one important aspect that can reduce the likelihood of budgetary slack that occurs at the time of budget preparation in the company especially in SOEs in Bandung
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Keywords
Budgetary Participation, Organizational Commitment, Slack Budget