Publication Type

PhD Dissertation

Publication Date

1-2017

Abstract

This study investigates the effect of honesty reminders on budgetary slack. Based on the self-concept maintenance theory of Mazar, Amir, and Ariely (2008), I posit that honesty reminders can reduce budgetary slack by making people more aware of their own standards of honesty and lowering their dishonesty thresholds, resulting in more honest behavior. I find strong evidence that honesty reminders reduce budgetary slack and are marginally more effective than penalties in reducing budgetary slack. Finally, I find that honesty reminders have a stronger effect on slack reduction than penalties when the payoff for slack creation is higher.

Keywords

participative budgets, honesty reminders, dishonesty thresholds, penalties

Degree Awarded

PhD in Business (General Management)

Discipline

Business Administration, Management, and Operations | Finance and Financial Management

Supervisor(s)

LIM, Chee Yeow

First Page

1

Last Page

69

Publisher

Singapore Management University

City or Country

Singapore

Creative Commons License

Creative Commons Attribution-Noncommercial 4.0 License
This work is licensed under a Creative Commons Attribution-Noncommercial-Share Alike 4.0 License.

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