Practice Developments in Budgeting: An Overview and Research Perspective

Posted: 28 Sep 2003

See all articles by Stephen C. Hansen

Stephen C. Hansen

University of Southern Maine - School of Business

David Otley

Lancaster University

Wim A. Van der Stede

London School of Economics & Political Science (LSE)

Multiple version iconThere are 2 versions of this paper

Abstract

Practitioners in Europe and the U.S. recently have proposed two distinct approaches to address what they believe are shortcomings of traditional budgeting practices. One approach advocates improving the budgeting process and primarily focuses on the planning problems with budgeting. The other advocates abandoning the budget and primarily focuses on the performance evaluation problems with budgeting. This paper provides an overview and research perspective on these two recent developments. We discuss why practitioners have become dissatisfied with budgets, describe the two distinct approaches, place them in a research context, suggest insights that may aid the practitioners, and use the practitioner perspectives to identify fruitful areas for research.

Keywords: budgeting, planning, strategy, activity based budgeting

JEL Classification: M41, M46, M47, L20

Suggested Citation

Hansen, Stephen C. and Otley, David T. and Van der Stede, Wim A., Practice Developments in Budgeting: An Overview and Research Perspective. Journal of Management Accounting Research, Vol. 15, pp. 95-116, 2003. Available at SSRN: https://ssrn.com/abstract=438681

Stephen C. Hansen (Contact Author)

University of Southern Maine - School of Business ( email )

P.O. Box 9300
Portland, ME 04104
United States

David T. Otley

Lancaster University ( email )

The Management School
Lancaster LA1 4YF
United Kingdom
+441 524 593 632 (Phone)
+441 524 652 01 (Fax)

Wim A. Van der Stede

London School of Economics & Political Science (LSE) ( email )

Houghton Street
London, WC2A 2AE
United Kingdom
+44 (0)20 7955 7420 (Fax)

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