Abstract
The role of accounting information (such as budget) in performance evaluation (reliance on accounting performance measures or RAPM) can cause managers feeling tension so that managers will have negative behavior like manipulating data and statement which is not appropriate with circumstance in fact. This was caused by motivation that emerges as result of desire to get reward as much as possible. The main objective of this research is to examine the moderating effect of budgetary participation and task uncertainty on the relationship between RAPM and manager’s behavior. Data were drawn from Indonesian manufacturing companies used a questionnaire survey. Further, the collected data were analyzed using an moderated regression analysis. The results showed that the higher the budgetary participation, the more negative is the relationship between RAPM and manager’s behavior. On the contrary the effect of task uncertainty on the relationship between RAPM and manager’s behavior was not significant. The research implication was that superior manager needs to pay attention to subordinate managers’ involvement on budget preparation when their performance were evaluated using accounting information so that dysfunctional behavior of subordinate managers can be minimized.
Key words: Accounting information, budgetary participation, task uncertainty, and manager’s behavior.
The role of accounting information (such as budget) in performance evaluation (reliance on accounting performance measures or RAPM) can cause managers feeling tension so that managers will have negative behavior like manipulating data and statement which is not appropriate with circumstance in fact. This was caused by motivation that emerges as result of desire to get reward as much as possible. The main objective of this research is to examine the moderating effect of budgetary participation and task uncertainty on the relationship between RAPM and manager’s behavior. Data were drawn from Indonesian manufacturing companies used a questionnaire survey. Further, the collected data were analyzed using an moderated regression analysis. The results showed that the higher the budgetary participation, the more negative is the relationship between RAPM and manager’s behavior. On the contrary the effect of task uncertainty on the relationship between RAPM and manager’s behavior was not significant. The research implication was that superior manager needs to pay attention to subordinate managers’ involvement on budget preparation when their performance were evaluated using accounting information so that dysfunctional behavior of subordinate managers can be minimized.
Key words: Accounting information, budgetary participation, task uncertainty, and manager’s behavior.