Perceptions of superiors’ reputations and subordinates’ honesty moderates effect of budget participation on budgetary slack

Putu Ayu Putri Ginanti; Anak Agung Gde Putu Widanaputra

doi:10.21744/ijbem.v5n3.1936

Authors

Putu Ayu Putri Ginanti
aginanti3@gmail.com
Faculty of Economics and Business, Udayana University, Bali, Indonesia
Anak Agung Gde Putu Widanaputra Faculty of Economics and Business, Udayana University, Bali, Indonesia

Keywords:

budget participation, budgetary slack, honesty subordinate, perception reputation superiors

Abstract

This study aims to provide empirical evidence regarding perceptions of superior reputation and subordinate honesty in weakening the effect of budgetary participation on budgetary slack. The data in this study were collected using a questionnaire. The population in this study is the Satuan Kerja Perangkat Daerah of Tabanan Regency with a sample of Echelon III and Echelon IV officials involved in budgeting. The sampling technique used is purposive sampling and obtained a sample of 199 respondents. The analysis technique in this study is Moderated Regression Analysis (MRA) using SPSS version 25 program. The results of the regression analysis state that the perception of superior reputation weakens the relationship between budgetary participation and budgetary slack. This means that the higher the level of perception of subordinates on the reputation of their superiors, the tendency for budgetary slack to occur will be lower. The results of the regression analysis also state that the honesty of subordinates weakens the relationship between budgetary participation and budgetary slack. This means that the higher the level of honesty of subordinates, the tendency for budgetary slack to occur will be lower.

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