Cultural and ethical effects in budgeting systems: A comparison of U.s. And chinese managers [Book Review]

Journal of Business Ethics 60 (2):159 - 174 (2005)
This study developed and tested a model of culture’s effect on budgeting systems, and hypothesized that system variables and reactions to them are influenced by culture-specific work-related and ethical values. Most organizational and behavioral views of budgeting fail to acknowledge the ethical components of the problem, and have largely ignored the role of culture in shaping organizational and individual values. Cross-cultural differences in reactions to system design variables, and in the behaviors motivated or mitigated by those variables, has implications for the design and effectiveness of budgeting systems. The data largely support our research model, demonstrating the hypothesized national cultural differences in system design variables (e.g., participation, standards tightness, budget emphasis, etc. which we characterized as the opportunity and incentives to create budgetary slack), and the expected relationship between incentives (but not opportunity) to create slack and slack creation behavior. The data demonstrate hypothesized cultural differences in ethical ideology but show ethical ideology related to slack creation behavior only for U.S. managers. A discussion of the results and their implications is included.
Keywords Ethics  culture  accounting
Categories (categorize this paper)
 Save to my reading list
Follow the author(s)
My bibliography
Export citation
Find it on Scholar
Edit this record
Mark as duplicate
Revision history Request removal from index
Download options
PhilPapers Archive

Upload a copy of this paper     Check publisher's policy on self-archival     Papers currently archived: 9,351
External links
  • Through your library Configure
    References found in this work BETA

    No references found.

    Citations of this work BETA

    View all 7 citations

    Similar books and articles

    Monthly downloads

    Added to index


    Total downloads

    15 ( #90,306 of 1,088,396 )

    Recent downloads (6 months)

    1 ( #69,601 of 1,088,396 )

    How can I increase my downloads?

    My notes
    Sign in to use this feature

    Start a new thread
    There  are no threads in this forum
    Nothing in this forum yet.