Seybold Report ISSN: 1533-9211
Nur Shahirah Adilah Mohd Sairazi1*, Dzulkifli Mukhtar2, Razli Che Razak3
and Nor Zawani Ibrahim4
1,2,3 Faculty of Entrepreneurship and Business, Universiti Malaysia Kelantan,
16100, Kota Bharu, Kelantan, Malaysia
4 Faculty of Business and Management, Universiti Teknologi Mara,
Kampus Puncak Alam, 42300, Selangor, Malaysia
nursairazi@gmail.com (Nur Shahirah Adilah Mohd Sairazi)
*Corresponding author
Vol 17, No 10 ( 2022 ) | DOI: 10.5281/zenodo.7157265 | Licensing: CC 4.0 | Pg no:1548-1566 | Published on: 07-10-2022
Abstract
Pressure to attain budgetary goals, creates an opportunistic behaviour to engage in dysfunctional behaviour during drafting of the budget. This dysfunctional behaviour known as budgetary slack causes managers to deliberately underestimate income and overestimate costs to increase the likelihood of achieving the budget target as well as provide an opportunity to acquire substantial personal gains. In view of this, the researcher seeks to examine individuals’ budgetary slack behaviour by applying the Theory of Planned Behaviour (TPB). This study extends the original TPB model by integrating additional constructs, namely peer influence, moral obligation, and self-efficacy into the TPB model. Moreover, this study incorporates self-control as a potential moderator in the relationship between behavioural intention and budgetary slack behaviour using the General Theory of Crime as a theoretical basis. Theoretically, the developed budgetary slack behaviour model provides insight into predicting and understanding the personal psychological factors influencing individuals’ budgetary slack behaviour. Practically, the developed model not only helps educators shape the ethical behaviour of individuals, but will also make it practically possible for organisations and policymakers to develop and implement effective management control systems (MCSs) and enhance the budgeting system to minimise budgetary slack behaviour.
Keywords:
Budgetary slack, general theory of crime, moral obligation, peer influence, self-control, self-efficacy, theory of planned behaviour.