Publication details
Budgetary Gaming Behavior and its Determinants
| Authors | |
|---|---|
| Year of publication | 2016 |
| Type | Article in Proceedings |
| Conference | European Financial Systems 2016 |
| MU Faculty or unit | |
| Citation | |
| Field | Management and administrative |
| Keywords | Management Accounting; Budgeting; Budgeting Gaming;Contingency Factors |
| Description | Budgetary gaming behavior (such as spending money at year end to avoid losing it, deferring necessary expenditures, accelerating sales near year end to meet the budget, negotiating easier targets) belongs among arguments against using budgets for company management. Especially proponents of Beyond Budgeting movement propose to abandon budgets for this reason. The paper presents results of the survey among 214 companies domiciled in the Czech Republic and Slovakia dealing with budgeting gaming and its context. Descriptive statistics and formal statistical test (Kruskal-Wallis, Mann-Whitney) revealed that the problem of budgetary gaming is more prevalent in larger companies that are subsidiaries. On the contrary, in the small enterprises it is less present problem, but more correspondents with the use of budgets for management purposes. Albeit the occurrence of budgetary gaming behavior, the companies in the sample did not intend to abandon budgeting at all. |