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.
Full-text Version
Publisher’s Version
Language
English