The Measurements of Budgetary Slack: The Empirical Evidence of Listed Companies in Thailand

  • Damrongsukniwat P
  • Kunpanitchakit D
  • Durongwatana S
N/ACitations
Citations of this article
36Readers
Mendeley users who have this article in their library.

Abstract

This study introduces an objective measurement of budgetary slack based on ex post measure of firm’s annual budget achievability with the exclusion of earnings management through discretionary accruals rather than the traditional subjective measurement based on management’s perceptions. Also, this study empirically examines the association between budgetary slack and its determinants under various budgetary slack measurements. This study uses data from survey questionnaires and data from the annual financial statements for the year ended 2009 of listed non-financial and non-rehabilitation companies in Thailand. The population covers 387 firms and there are 38 returned and usable questionnaires which is 10% response rate. Although the objective measurement of budgetary slack is statistically found to be positively related to the traditional subjective measurement, the suggested objective measurement is considered to be a superior one. Moreover, the association between budgetary slack and its determinants is relatively sensitive to the measurements of budgetary slack.

Cite

CITATION STYLE

APA

Damrongsukniwat, P., Kunpanitchakit, D., & Durongwatana, S. (2015). The Measurements of Budgetary Slack: The Empirical Evidence of Listed Companies in Thailand. Journal of Economics, Business and Management, 3(2), 244–251. https://doi.org/10.7763/joebm.2015.v3.188

Register to see more suggestions

Mendeley helps you to discover research relevant for your work.

Already have an account?

Save time finding and organizing research with Mendeley

Sign up for free