Mahurin Honors College Capstone Experience/Thesis Projects




Holly Coover

Document Type



This paper is a review of the literature that examines relationships between budgetary system characteristics and employee attitudes and behaviors. Articles were selected on the basis of several criteria: (a) they present studies that empirically examine the effect of one or more budgetary system characteristics on one or more attitudes and behaviors, (b) they were published in accounting and organizational behavior journals that are common outlets for empirical budgeting research, and (c) they were published in 1995 or later. Results of this review indicated that budgetary participation and budgetary justice are particularly important budgetary system characteristics that affect a variety of employee attitudes and behaviors, particularly performance, budgetary slack, and job satisfaction. Budgetary participation and budgetary justice work through a variety of intervening variables such as organizational commitment, budget goal commitment, budget-based compensation, job-relevant information, role ambiguity, informational asymmetry, trust in superior, and budget satisfaction. The effects of budgetary participation and budgetary justice on employee attitudes and behaviors are moderated by variables such as role ambiguity, information asymmetry, budget emphasis, procedural justice, and role conflict. This literature review provides insight that will help practicing accountants design and implement more effective budgetary systems. The findings will also help provide a resource for researchers who study relationships between budgetary system characteristics and employees' attitudes and behaviors.

Advisor(s) or Committee Chair

Dr. Nace R. Magner


Accounting | Other Business