Title

Decentralisation as a moderating factor in the budgetary participation-performance relationship : some Hong Kong evidence

Document Type

Journal article

Source Publication

Accounting and Business Research

Publication Date

1-1-1995

Volume

25

Issue

98

First Page

107

Last Page

113

Abstract

This study tests the contingency or ‘fit’ hypothesis that the effects of budgetary participation on managerial performance will be positive in decentralised organisations and negative in centralised organisations. The responses of 37 managers from a cross-section of Hong Kong manufacturing companies to a questionnaire survey designed to measure the variables were analysed by examining the interaction term in a multiple regression equation. The results supported the interaction hypothesis and found that at high levels of decentralisation there is a positive relationship between budgetary participation and managerial performance but at low levels of decentralisation this relationship is negative. These findings have implications for the design of effective control subsystems.

DOI

10.1080/00014788.1995.9729933

Print ISSN

00014788

Funding Information

Sponsorship for this project from the Research Board of Hong Kong Society of Accountants.

Publisher Statement

Copyright © 1995, Taylor & Francis Group, LLC. All rights reserved. Access to external full text or publisher's version may require subscription.

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