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)peer-review

51 Citations (Scopus)


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
Issue number98
Publication statusPublished - 1 Jan 1995

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