Budgeting: An experimental investigation of the effects of negotiation

Accounting Review

Volumn 75, Issue 1, 2000, Pages 93-114

  Fisher, Joseph G ^a   Frederickson, James R ^a   Peffer, Sean A ^a  

^a NONE

Author keywords

Budgetary slack; Budgeting; Negotiation; Participative budgeting

Indexed keywords

EID: 0034423067     PISSN: 00014826     EISSN: None     Source Type: Journal    
DOI: 10.2308/accr.2000.75.1.93     Document Type: Article

References (47)

1. Agresti, A., and B. Finlay. 1986. Statistical Methods for the Social Sciences. 2nd edition. San Francisco, CA: Macmillan.
2. Andreoni, J., and J. Miller. 1993. Rational cooperation in the finitely repeated prisoner's dilemma: Experimental evidence. Economic Journal 103 (May): 570-585.
3. Anthony, R. J., and V. Govindarajan. 1994. Management Control Systems. New York, NY: Irwin.
4. Baiman, S. 1982. Agency theory in managerial accounting: A survey. Journal of Accounting Literature 1 (Spring): 154-213.
5. Barrett, M. E., and L. B. Fraser III. 1977. Conflicting roles in budgeting for operations. Harvard Business Review 55 (July-August): 137-146.
6. Benton, A. A., H. H. Kelley, and B. Liebling. 1972. Effects of extremity of offers and concession rate on the outcomes of bargaining. Journal of Personality and Social Psychology 24: 73-83.
7. Brownell, P. J. 1981. Participation in budgeting, locus of control and organizational effectiveness. The Accounting Review 56 (October): 844-860.
8. Chenhall, R. H. 1986. Authoritarianism and participative budgeting: A dyadic analysis. The Accounting Review 61 (April): 263-272.
9. Chertkoff, J., and M. Conley. 1967. Opening offer and frequency of concession as bargaining strategies. Journal of Personality and Social Psychology 7: 181-185.
10. Chow, C. 1983. The effects of job standard tightness and compensation scheme on performance: An exploration of linkages. The Accounting Review 58 (October): 667-685.
11. _, J. Cooper, and W. Waller. 1988. Participative budgeting: effects of a truth-inducing pay scheme and information asymmetry on slack and performance. The Accounting Review 63 (January): 111-122.
12. _, _, and K. Haddad. 1991. The effects of pay schemes and ratchets on budgetary slack and performance: A multiperiod experiment. Accounting, Organizations and Society 16: 47-60.
13. _, M. Hirst, and M. D. Shields. 1995. The effects of pay schemes and probabilistic management audits on subordinate misrepresentation of private information: An experimental investigation in a resource allocation context. Behavioral Research in Accounting 7: 1-16.
14. Crystal, G. S. 1993. Budgets and performance compensation. In Handbook of Budgeting, 3rd edition, edited by Rachlin and Sweeney. New York, NY: Wiley.
15. Dillard, J., and J. Fisher. 1990. Compensation schemes, skill level, and task performance: An experimental examination. Decision Sciences 21 (Winter): 121-137.
16. Erez, M., and I. Zidon. 1984. Effect of goal acceptance on the relationship of goal difficulty to performance. Journal of Applied Psychology 69 (February): 69-78.
17. Folger, R. 1977. Distributive and procedural justice: Combined impact of "voice" and improvement on experienced inequity. Journal of Personality and Social Psychology 35: 108-119.
18. Frederickson, J. R., and C. B. Cloyd. 1998. The effects of performance cues, subordinate susceptibility to social influences, and the nature of the subordinate's private information on budgetary slack. Advances in Accounting 16: 89-115.
19. Healy, P. 1984. The effect of bonus schemes on accounting decisions. Journal of Accounting and Economics 7: 85-107.
20. Henderson, R. 1989. Compensation Management: Rewarding Performance. Reston, VA: Reston.
21. Herman, M., and N. Kogan. 1977. Effects of negotiators' personalities on negotiating behavior. In Negotiation: Social Psychological Perspective. Los Angeles, CA: Sage.
22. Hey, J. D. 1991. Experiments in Economics. Cambridge, MA: Basil Blackwell.
23. Hinton, B., W. Hamner, and M. Polen. 1974. The influence of reward magnitude, opening bid and concession rate on profit earned in a managerial negotiation game. Behavioral Science 19: 197-203.
24. Hollenbeck, J. R., and H. J. Klein. 1987. Goal commitment and the goal-setting process: Problems, prospects, and proposals for future research. Journal of Applied Psychology 72: 212-220.
25. Howell, R. A., and M. Sakurai. 1992. Management accounting (and other) lessons from the Japanese. Management Accounting (December): 28-34.
26. Lewicki, J., J. Litterer, J. Minton, and M. Saunders. 1994. Negotiation. Homewood, IL: Irwin.
27. Lindman, H. R. 1992. Analysis of Variance in Experimental Design. New York, NY: Springer-Verlag.
28. Lindquist, T. M. 1995. Fairness as an antecedent to participative budgeting: Examining the effects of distributive justice, procedural justice and referent cognitions on satisfaction and performance. Journal of Management Accounting Research 7: 122-147.
29. Locata, M. P., R. H. Strawser, and R. B. Welker. 1986. A note on participation in budgeting and locus of control. The Accounting Review 61 (January): 112-117.
30. Locke, E. 1968. Toward a theory of task motivation and incentives. Organizational Behavior and Human Performance 3: 157-189.
31. _, and G. P. Latham. 1990. A Theory of Goal Setting & Task Performance. Englewood Cliffs, NJ: Prentice Hall.
32. Luft, J. L., and R. Libby. 1997. Profit comparisons, market prices and managers' judgments about negotiated transfer prices. The Accounting Review 72 (April): 217-230.
33. Magee, R. P. 1980. Equilibria in budget participation. Journal of Accounting Research 18 (Autumn): 551-573.
34. Merchant, K. 1989. Rewarding Results: Motivating Profit Center Managers. Boston, MA: Harvard Business School Press.
35. Morris, M. W., D. L. H. Sim, and V. Girotto. 1995. Time of decision, ethical obligation, and causal illusion: Temporal cues and social heuristics in the prisoner's dilemma. In Negotiation as a Social Process, edited by Kramer and Messick. Thousand Oaks, CA: Sage Publications.
36. Neale, M., and M. Bazerman. 1991. Cognition and Rationality in Negotiation. New York, NY: Free Press.
37. Pruitt, D. G., and P. J. Carnevale. 1993. Negotiation in Social Conflict. Pacific Grove, CA: Brooks/ Cole Publishing.
38. Raiffa, H. 1982. The Art and Science of Negotiation. Boston, MA: University Press.
39. Rubin, J., and B. Brown. 1975. The Social Psychology of Bargaining and Negotiation. New York, NY: Academic Press.
40. Salancik, G. R., and J. Pfeffer. 1977. Who gets power - and how they hold on to it - a strategic contingency model of power. Organizational Dynamics 5 (Winter): 2-21.
41. Tripp, T. M., and H. Sondak. 1992. An evaluation of dependent variables in experimental negotiation studies: Impasse rates and pareto efficiency. Organizational Behavior and Human Decision Processes 51 (March): 273-295.
42. Tubbs, M. E., and S. E. Ekeberg. 1991. The role of intentions in work motivation: Implications for goal setting theory and research. Academy of Management Review 16: 180-199.
43. Umapathy, S. 1987. Current Budgeting Practices in U.S. Industry. New York, NY: Quorum Books.
44. Waller, W. 1988. Slack in participative budgeting: The joint effect of a truth-inducing pay scheme and risk preferences. Accounting, Organizations and Society 13: 87-98.
45. _. 1994. Discussion of motivating truthful subordinate reporting: An experimental investigation in a two-subordinate context. Contemporary Accounting Research 10 (Spring): 721-734.
46. Young, S. M. 1985. Participative budgeting: The effects of risk aversion and asymmetric information on budgetary slack. Journal of Accounting Research 23 (Autumn): 829-842.
47. _, J. Fisher, and T. M. Lindquist. 1993. The effects of intergroup and intragroup cooperation on slack in a manufacturing setting. The Accounting Review 68 (July): 468-481.