An Investigation of the Organizational and Behavioral Effects of Corporate and National Culture on Budgeting Systems

Posted: 16 May 2005 Last revised: 2 Jan 2013

See all articles by Hassan R. Hassabelnaby

Hassan R. Hassabelnaby

University of Toledo - Department of Accounting

Patricia Casey Douglas

Loyola Marymount University

Benson Wier

Virginia Commonwealth University

Date Written: January 1, 2013

Abstract

We investigated the effects of corporate versus national culture by extending Hofstede et al.'s (1990) study of cross-organizational culture in a participatory budgeting environment. We surveyed Egyptian managers who worked for Egyptian or U.S. firms eliciting their perceptions of the budgeting environment. We found support for our hypotheses indicating higher (lower) levels of participation for Egyptian managers working in U.S. (Egyptian) firms, higher (lower) levels of incentive to create slack in U.S. (Egyptian) firms, and more (less) frequent slack creation behavior among Egyptian managers employed by U.S. (Egyptian) firms. Significant differences were found between levels of idealism and relativism between Egyptian subjects employed by U.S. and Egyptian companies. We also found support for our hypothesis that models of slack creation behavior will vary between U.S. and Egyptian companies employing Egyptian subjects.

Keywords: Ethics, slack creation, budgetary participation, corporate culture, national culture

JEL Classification: M49

Suggested Citation

Hassabelnaby, Hassan R. and Douglas, Patricia Casey and Wier, Benson, An Investigation of the Organizational and Behavioral Effects of Corporate and National Culture on Budgeting Systems (January 1, 2013). Available at SSRN: https://ssrn.com/abstract=721161

Hassan R. Hassabelnaby (Contact Author)

University of Toledo - Department of Accounting ( email )

Toledo, OH 43606
United States

Patricia Casey Douglas

Loyola Marymount University ( email )

7900 Loyola Boulevard
Los Angeles, CA 90045-8350
United States

Benson Wier

Virginia Commonwealth University ( email )

School of Business 301 W. Main St.
Richmond, VA 23284
United States
804-828-7162 (Phone)
804-828-8884 (Fax)

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