This thesis investigates firstly the relationships between budget participation on the one hand and managerial performance, job satisfaction and budget slack on the other. These relationships were investigated at individual level, directly or by using moderating variables like organisational commitment, job relevant information and locus of control. Secondly, the effects of external factors on budgeting process in public industrial sector in Libya. Specifically, it seeks to examine the budgeting process at the organisation level, and of the effects of external variables on it. It aims to give full information about the perceptions, beliefs and views of managers on budgeting process practices in the Libyan organisations. To examine the above relationships specific hypotheses were stated and triangulation method was employed in this study to collect data. 275 questionnaires were distributed to seven Electrical and Engineering companies located in Libya. Some interviews were conducted with managers in theses companies at three levels. 182 questionnaires were returned with percentage rate of 66%. The results revealed several interactive and direct relationships between independent and dependent variables. Regarding direct relationships, budget participation was found to have a positive correlation with performance and job satisfaction. On the other hand, it was found that there was a negative relation with budget slack. Regarding the effect of the interaction between participation and organisational commitment on performance, job satisfaction and budget slack the results revealed that there were was shown to be significant interactions. However, the effect of the interaction between participation and job relevant information on dependent variables was shown to be insignificant. Also the results revealed that the effect of the interaction between participation and locus of control on managerial performance and job satisfaction was significant. The results enabled the proposition of several tentative theoretical and practical implications for management accounting systems design, as well as several suggestions for future research. Overall, the results seem to contribute significantly to the understanding of organisational effectiveness through improved insight into factors underlying effective management accounting systems, particularly the use of the participation approach in budget setting.

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Firms have been found to use different methods when evaluating their capital investments, and may also be using multiple appraisal methods. Few explanations have been provided to adequately account for the differences in the firms' choice of appraisal techniques. The purpose of this research is to empirically investigate and to explain the existing capital budgeting practice by Malaysian manufacturing firms, particularly when faced with real options situations and advanced manufacturing technology (AMT) investments, and to understand the factors that contribute to the selection of the appraisal techniques. The main motivation and focus is provided by the literature on options theoty. Given previous evidence of the general non-usage of options theory, the research will consider whether the theoretical reasons for the use and non-use of options theory apply to the selection of capital investment appraisal techniques in general. Two theoretical frameworks, contingency theoty and technology acceptance model (TAM), were adapted for this purpose. Using postal questionnaires, responses from eighty-eight firms were found usable. It was discovered that few firms consider real options theory when evaluating options situations. Thus, the complementary hypotheses based on the use of sophisticated capital investment appraisal techniques were used, instead of the real options usage. Interviews were also conducted to supplement the findings from the survey. Tests on the validity and reliability were conducted. The contingent variables largely factored in an acceptable way except for strategy, but technology acceptance modelling (TAM) was rejected as an overall theory because of its poor results of factor analysis. However, the TAM variables were used in the analysis as individual variables since their reliability does not appear to be a problem. The results indicated that majority of the Malaysian firms both prefer and use the techniques of payback, personal judgement, internal rate of return and net present value. The findings also showed that these techniques were also used when faced with options situation and in the evaluation of AMT investments. Multiple regression analysis was carried out on the contingent variables. As the firms were known to use more than one technique in their investment selection process, cluster analysis was used t9 group firms that share usage patterns, and were analysed based on these groupings. The results from the analysis showed that there was little evidence of the contingency factors affecting the firms' usage of appraisal techniques. However, the analysis of individual TAM variables revealed some interesting findings. These cluster groups are found to be significantly different for the usefulness and satisfaction gained from using the techniques. In summary; this study has reported the techniques frequently used by a majority of the Malaysian manufacturing firms, and actions taken when faced with options situation and AMT investment decisions. It showed that there was some consideration and barriers in improving their capital investment appraisal practice.

This study examines the divide between finance theory and practice by analysing the significance of the determinants of capital structure choice among 123 listed firms on the JSE, to determine whether these firms follow the trade-off theory or the pecking-order theory. Data obtained from McGregor’s Bureau of Financial Analysis database was analysed using standard multiple regressions, stepwise regressions and ANOVA techniques to test for financing behaviour. The results indicated that the trade-off model has both cross-sectional and time-series explanatory power for explaining the financing behaviour, while tests on the pecking-order model were weak. The results further revealed a significant positive correlation between debt financing and financial distress, and a significant negative correlation between debt financing and the collateral value of assets during the period under study (1995-2005). These findings suggest a divergence between finance theory and practice for JSE listed firms and manifest conflicting ideologies between finance practices of developed and developing economies. / Business management / M. Com. (Business Management )

This study examines the divide between finance theory and practice by analysing the significance of the determinants of capital structure choice among 123 listed firms on the JSE, to determine whether these firms follow the trade-off theory or the pecking-order theory. Data obtained from McGregor’s Bureau of Financial Analysis database was analysed using standard multiple regressions, stepwise regressions and ANOVA techniques to test for financing behaviour. The results indicated that the trade-off model has both cross-sectional and time-series explanatory power for explaining the financing behaviour, while tests on the pecking-order model were weak. The results further revealed a significant positive correlation between debt financing and financial distress, and a significant negative correlation between debt financing and the collateral value of assets during the period under study (1995-2005). These findings suggest a divergence between finance theory and practice for JSE listed firms and manifest conflicting ideologies between finance practices of developed and developing economies. / Business management / M. Com. (Business Management )