Decentralisation as a moderating factor in the budgetary participation-performance relationship : some Hong Kong evidence

Ferdinand A. GUL, Judy S. L. TSUI, Steve C. C. FONG, Helen Y. L. KWOK

    Research output: Journal PublicationsJournal Article (refereed)

    41 Citations (Scopus)

    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.
    Original languageEnglish
    Pages (from-to)107-113
    Number of pages7
    JournalAccounting and Business Research
    Volume25
    Issue number98
    DOIs
    Publication statusPublished - 1 Jan 1995

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    Factors
    Managerial performance
    Budgetary participation
    Decentralization
    Hong Kong
    Multiple regression
    Contingency
    Interaction
    Questionnaire survey
    Cross section
    Subsystem
    Manufacturing companies
    Interaction terms
    Managers

    Cite this

    GUL, Ferdinand A. ; TSUI, Judy S. L. ; FONG, Steve C. C. ; KWOK, Helen Y. L. / Decentralisation as a moderating factor in the budgetary participation-performance relationship : some Hong Kong evidence. In: Accounting and Business Research. 1995 ; Vol. 25, No. 98. pp. 107-113.
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    Decentralisation as a moderating factor in the budgetary participation-performance relationship : some Hong Kong evidence. / GUL, Ferdinand A.; TSUI, Judy S. L.; FONG, Steve C. C.; KWOK, Helen Y. L.

    In: Accounting and Business Research, Vol. 25, No. 98, 01.01.1995, p. 107-113.

    Research output: Journal PublicationsJournal Article (refereed)

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    AU - GUL, Ferdinand A.

    AU - TSUI, Judy S. L.

    AU - FONG, Steve C. C.

    AU - KWOK, Helen Y. L.

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    AB - 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.

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