INFLUENCE OF INFORMATION SHARING, BUDGET FAVORABILITY AND COMMITMENT TO BUDGET TARGETS ON THE RELATIONSHIP BETWEEN BUDGET PARTICIPATION AND MANAGERIAL PERFORMANCE
Name: HUGO MICAEL DE OLIVEIRA FARIA
Publication date: 26/02/2024
Examining board:
Name |
Role |
|---|---|
| VINICIUS COSTA DA SILVA ZONATTO | Advisor |
Summary: Understanding budgetary processes and their effects on human behavior at work represents an
important aspect of study in the managerial area of accounting. Among its approaches, the
analysis of its effects on managerial performance in the budgetary context is a topic that requires
further investigation, given the conflicting results identified in the literature. The use of controls
that enable better decision-making and the qualification of management processes provides new
understandings to the organizational environment. In this sense, the budget is one of these
control instruments used for this purpose. In controllership, the use of the budget helps
controllers manage their work assignments. Although, in some cases, the controller may be one
of the actors responsible for preparing the budget, he or she also reports to his or her superiors
regarding his or her area of responsibility. For this reason, understanding the factors influencing
managerial performance in the budgetary context becomes an important research gap to be
explored in the field of management accounting studies. In this context, this research evaluates
the influence of vertical information sharing (superior vs. subordinate), budget favorability and
commitment to budget goals on the relationship between budget participation and the
managerial performance of controllers of industrial companies operating in Brazil. Descriptive
research, with a quantitative approach (and use of structural equation modeling), was carried
out through a survey, with the application of a questionnaire through the LinkedIn® business
network. The sample analyzed was made up of 257 managers in the controlling area and with
budgetary responsibility in these organizations. The results found showed that budget
participation had a positive and direct influence on information sharing and budget favorability,
but the same does not occur in terms of commitment to budget goals and managerial
performance, which shows that such relationships may not occur directly, but influenced by
other intervening variables. The effects of budget participation on commitment to budget goals
occur when information is shared. The interaction between these variables (information sharing
and commitment to budgetary targets) enhances the controllers' managerial performance,
influencing it positively. The results also revealed that budget favorability does not have a
significant influence on commitment to budget goals and managerial performance. This
evidence shows that budgetary participation may not be sufficient when put alone to reflect
high levels of managerial performance, suggesting the need for sharing and availability of
information, and for controllers' commitment to the established budgetary goals, so that they
can achieve better performance. high management. These findings contribute to management
research in the accounting area, revealing the interactions that exist between the variables
investigated in this research, and their intervening effects on the relationship between budgetary
participation and managerial performance.
