Academy of Accounting and Financial Studies Journal (Print ISSN: 1096-3685; Online ISSN: 1528-2635)

Abstract

Organizational Ethical Behavior and Control Mechanisms in the Budget Performance of Local Government in Indonesia

Author(s): Suleman H.A. Kahar, Suriana A.R. Mahdi, Nurdin

This study aims to examine the effect of budget participation variable on managerial performance with budget ethics compliance and budget emphasis as moderating variables. This study uses a survey method with questionnaires distributed to 30 regional work units in the Local Government of Ternate City, Maluku, Indonesia. A total of 180 questionnaires were distributed to managers involved in budgeting. In the further data tabulation, only 163 questionnaires were declared eligible to be tested at further stage. Data analysis used is simple linear regression and Moderated Regression Analysis (MRA). The results showed that budgetary participation had a significant influence on managerial performance. In their role as moderating variables, the budget ethics compliance and budget emphasis are empirically able to function as moderating in the effect of budgetary participation on managerial performance. Some theoretical and managerial implications are also presented as a follow-up to the results of the study.

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