Publication Type

Journal Article

Version

acceptedVersion

Publication Date

1-2023

Abstract

This study investigates the effect of honesty reminders on budgetary slack. Based on self-concept maintenance theory, the authors posit that honesty reminders can reduce budgetary slack by making people more aware of their own standards of honesty, resulting in more honest behavior. Using an experimental research design, the authors find evidence that honesty reminders reduce budgetary slack. The authors also find that although penalties can similarly reduce budgetary slack, they tend to cause distrust and resentment from subordinates. Therefore, honesty reminders may be a less costly method than penalties for reducing budgetary slack.

Keywords

Budgetary slack, honesty reminders, dishonesty thresholds, trust, self-concept maintenance theory, experimental research, participative budgeting

Discipline

Accounting | Business Law, Public Responsibility, and Ethics | Corporate Finance

Research Areas

Corporate Reporting and Disclosure

Publication

Advances in Management Accounting

Volume

34

First Page

203

Last Page

226

ISSN

1474-7871

Identifier

10.1108/S1474-787120220000034008

Publisher

Emerald

Copyright Owner and License

Authors

Additional URL

https://doi.org/10.1108/S1474-787120220000034008

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