DAMPAK VOLATILITAS LINGKUNGAN TERHADAP HUBUNGAN ANTARA STRATEGI UNIT BISNIS, EVALUASI KINERJA BERBASIS INFORMASI AKUNTANSI DAN KESENJANGAN ANGGARAN

Abstract

Current study provides a way out of the intractable debate among economists and behaviorists with regard the presence of slack in business units’ budget with regard to the appropriateness of budgetary controls to reduce budgetary biasing behavior in business units. Particularly, the study aims to test the impact of environmental volatility on the structural relationships between business unit strategy, reliance on accounting performance measures and budgetary biasing behavior. Findings from business unit managers provide strong evidence that the appropriateness of accounting based budgetary controls differ across environmental volatility. Key words: Environmental Volatility, Budgetary controls, Business strategy, Budgetary biasing behavior