The Moderating Effect of Loyalty on Incentive Schemes and Budgetary Slack Relationship: An Experimental Investigation
This study examines the causal relationship between incentives scheme (subjective vs. objective) on budgetary slack. Besides, this study also identifies the moderating role of loyalty on the relationship between those two variables. This study used a 2 × 2 between-subjects laboratory experiment with...
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| Format: | Article |
| Language: | English |
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Ikatan Akuntan Indonesia
2023-05-01
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| Series: | The Indonesian Journal of Accounting Research |
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| Online Access: | https://ijar-iaikapd.or.id/index.php/ijar/article/view/690 |
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| author | Frida Fanani Rohma Inge Novitasari |
| author_facet | Frida Fanani Rohma Inge Novitasari |
| author_sort | Frida Fanani Rohma |
| collection | DOAJ |
| description | This study examines the causal relationship between incentives scheme (subjective vs. objective) on budgetary slack. Besides, this study also identifies the moderating role of loyalty on the relationship between those two variables. This study used a 2 × 2 between-subjects laboratory experiment with 102 accounting undergraduate students as the subjects. Incentive schemes were manipulated into two types (subjective and objective), and loyalty was categorized into two (high and low). The results show that Budgetary slack tends to be higher under the subjective incentives scheme than the objective one. Also, loyalty negatively influences budgetary slack. Loyalty reduces the negative effect of incentives scheme and budgetary slack relationship. Individuals' loyalty, as one of the internal factors that encourage positive individual behavior, will result in lower slack even though they are faced with conditions that are not as desired. |
| format | Article |
| id | doaj-art-a6221df0cd624f0eae29de63b84a559f |
| institution | Kabale University |
| issn | 2086-6887 2655-1748 |
| language | English |
| publishDate | 2023-05-01 |
| publisher | Ikatan Akuntan Indonesia |
| record_format | Article |
| series | The Indonesian Journal of Accounting Research |
| spelling | doaj-art-a6221df0cd624f0eae29de63b84a559f2024-11-22T02:52:32ZengIkatan Akuntan IndonesiaThe Indonesian Journal of Accounting Research2086-68872655-17482023-05-01262209228 10.33312/ijar.690The Moderating Effect of Loyalty on Incentive Schemes and Budgetary Slack Relationship: An Experimental InvestigationFrida Fanani Rohma0Inge Novitasari1Universitas Trunojoyo Madura, IndonesiaUniversitas Trunojoyo Madura, IndonesiaThis study examines the causal relationship between incentives scheme (subjective vs. objective) on budgetary slack. Besides, this study also identifies the moderating role of loyalty on the relationship between those two variables. This study used a 2 × 2 between-subjects laboratory experiment with 102 accounting undergraduate students as the subjects. Incentive schemes were manipulated into two types (subjective and objective), and loyalty was categorized into two (high and low). The results show that Budgetary slack tends to be higher under the subjective incentives scheme than the objective one. Also, loyalty negatively influences budgetary slack. Loyalty reduces the negative effect of incentives scheme and budgetary slack relationship. Individuals' loyalty, as one of the internal factors that encourage positive individual behavior, will result in lower slack even though they are faced with conditions that are not as desired.https://ijar-iaikapd.or.id/index.php/ijar/article/view/690loyaltyincentive schemebudgetary slackstewardship |
| spellingShingle | Frida Fanani Rohma Inge Novitasari The Moderating Effect of Loyalty on Incentive Schemes and Budgetary Slack Relationship: An Experimental Investigation The Indonesian Journal of Accounting Research loyalty incentive scheme budgetary slack stewardship |
| title | The Moderating Effect of Loyalty on Incentive Schemes and Budgetary Slack Relationship: An Experimental Investigation |
| title_full | The Moderating Effect of Loyalty on Incentive Schemes and Budgetary Slack Relationship: An Experimental Investigation |
| title_fullStr | The Moderating Effect of Loyalty on Incentive Schemes and Budgetary Slack Relationship: An Experimental Investigation |
| title_full_unstemmed | The Moderating Effect of Loyalty on Incentive Schemes and Budgetary Slack Relationship: An Experimental Investigation |
| title_short | The Moderating Effect of Loyalty on Incentive Schemes and Budgetary Slack Relationship: An Experimental Investigation |
| title_sort | moderating effect of loyalty on incentive schemes and budgetary slack relationship an experimental investigation |
| topic | loyalty incentive scheme budgetary slack stewardship |
| url | https://ijar-iaikapd.or.id/index.php/ijar/article/view/690 |
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