Larissa Kyj (email@example.com) is a Professor in the Rohrer College of Business, Rowan University, and Robert J. Parker an Associate Professor in the Department of Accounting, College of Business Administration, University of New Orleans.
Antecedents of Budget Participation: Leadership Style, Information Asymmetry, and Evaluative Use of Budget
Version of Record online: 3 DEC 2008
© 2008 The Authors. Journal compilation © 2008 Accounting Foundation, The University of Sydney
Volume 44, Issue 4, pages 423–442, December 2008
How to Cite
Kyj, L. and Parker, R. J. (2008), Antecedents of Budget Participation: Leadership Style, Information Asymmetry, and Evaluative Use of Budget. Abacus, 44: 423–442. doi: 10.1111/j.1467-6281.2008.00270.x
- Issue online: 3 DEC 2008
- Version of Record online: 3 DEC 2008
- Budget participation;
This study explores the causes or antecedents of budget participation to understand more fully the role of participation in the workplace. The study focuses on the reasons why superiors encourage the budget participation of their subordinates and draws upon several theoretical perspectives including leadership theory, agency theory and organizational justice. To examine the issues, a survey was administered to managers and supervisors in several companies. Results of path analysis suggest that superiors encourage subordinate participation when the superior's leadership style is considerate. This implies that budget participation may mediate the relation between leadership style and work outcomes. Results also suggest that superiors encourage participation when budget goals are used in the performance evaluation of subordinates, in which case, the study argues, the superiors encourage participation because of concerns about organizational justice. This finding implies that budget participation may mediate the relation between the evaluative use of budget and those work outcomes that prior research has linked to organizational justice. The proposed relation between information asymmetry and budget participation is not supported.