We found a match
Your institution may have access to this item. Find your institution then sign in to continue.
- Title
THE BUDGET PARTICIPATION - BUDGETARY SLACK RELATIONSHIP: THE ROLE OF PSYCHOLOGICAL CAPITAL (PsyCap).
- Authors
Venkatesh, Roopa
- Abstract
The creation of budgetary slack during budget participation has mostly been viewed as unfavorable employee behavior, which is detrimental to the financial well-being of an organization. Prior research has mainly used agency theory to better understand the issue of budgetary slack, while making the fundamental assumption of agency theory that individuals will maximize their self-interest, thereby maximizing the level of slack when given the incentive and opportunity to do so. The results of these studies, however, are mixed and contradict the fundamental assumption of agency theory. Consequently, researchers have expressed that the desire to create slack is partially an individual-level characteristic and recommend that research should examine the influence of individual behavior during budget participation to better understand the creation of budgetary slack. This paper draws from theory in positive psychology and discusses the role of an individual level variable, Psychological Capital -"PsyCap" in the creation of budgetary slack during budget participation. PsyCap is an emerging construct that represents an individual's positive state of psychological development, and is characterized by the individual's hope, efficacy, optimism, and resiliency. Specifically, it is proposed that greater levels of budget participation will be associated with higher levels of individual PsyCap, which in turn will be associated with lower levels of individual budgetary slack. Finding support for the propositions in this paper would suggest that PsyCap, an individual level variable rooted in the theory of positive psychology, has the potential to inform future research on the issue of budgetary slack.
- Subjects
BUDGET; EMPLOYEE psychology; POSITIVE psychology; HUMAN capital; AGENCY theory; LABOR incentives; WELL-being
- Publication
Journal of Theoretical Accounting Research, 2014, Vol 9, Issue 2, p1
- ISSN
1556-5106
- Publication type
Article