Effects of Procedural Justice Perception, Budgetary Control Effectiveness and Ethical Work Climate on Propensity to Create Budgetary Slack

Business and Economics Research Journal, Vol. 2, No. 4, pp. 1-18, 2011

18 Pages Posted: 19 Oct 2011

See all articles by Gökhan Özer

Gökhan Özer

Gebze Technical University

Emine Yilmaz

Istanbul Medeniyet University

Date Written: October 19, 2011

Abstract

Because of the increasing importance of effective and productive management of public organizations, budgetary slack is started to be seen as an important problem for public organizations. In order to contribute the solution of this problem, the current study investigates the effects of budgetary control effectiveness, ethical work climate and managers’ procedural justice perception on propensity to create budgetary slack in pubic organizations. The data is obtained through questionnaire responded by 465 managers who work in different public organizations. The results of the analyses show that effectiveness of budgetary control, ethical work climate and procedural justice perception of managers have a statistically significant and negative impact on managers’ propensity to create budgetary slack in public organizations. Budgetary control and ethical work climate affect managers’ perception of procedural justice. In addition, it is inferred from the study that the perception of procedural justice has partial mediation effect between effectiveness of budgetary control, ethical work climate and propensity to create budgetary slack.

Keywords: Budgetary slack, Budgetary control, Procedural justice, Ethical work climate, Public organizations

JEL Classification: M40, M41, M42, L20, L30

Suggested Citation

Özer, Gökhan and Yilmaz, Emine, Effects of Procedural Justice Perception, Budgetary Control Effectiveness and Ethical Work Climate on Propensity to Create Budgetary Slack (October 19, 2011). Business and Economics Research Journal, Vol. 2, No. 4, pp. 1-18, 2011. Available at SSRN: https://ssrn.com/abstract=1946233

Gökhan Özer

Gebze Technical University ( email )

Cayirova-Gebze
Kocaeli, Istanbul 41400
Turkey

Emine Yilmaz (Contact Author)

Istanbul Medeniyet University ( email )

D-100 Karayolu
Merdivenkoy Mevkii No:6/1 Goztepe/Kadıkoy
Istanbul
Turkey

HOME PAGE: http://www.medeniyet.edu.tr/

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