This thesis indicates that the relationship between the budgetary participation and managerial performance of Japanese companies in Taiwan is practical. If organizational performance is an intervening variable of budgetary participation and organizational commitment, it proves that the relationship budgetary participation and organizational commitment is positive and obvious. It also reveals that organizational commitment and managerial performance also have a positive relationship. In addition, budgetary participation can get an indirect influence to increase managerial performance by adding organizational commitment., The demonstrations show that the relationship between budgetary participation and managerial performance is negative, which is the same as the outcome of Sterdry (1960), Bryan & Locke (1967), Blumenfield & Leidly (1969) and Cherrington (1973). However, it is different from that of Argyris (1955), Brownell (1982), Brownell & McInnes (1986), Govindarajan (1986), Dunk (1990), Kren (1992). Therefore, the relationship between budgetary performance and managerial performance has not reached a consistent conclusion until now. In order to explain the inconsistent relationship between budgetary participation and managerial performance, the studies are based on the organizational commitment as an intervening variable. After the demonstrations, without dividing into groups, organizational commitment has an indirect influence between budgetary participation and managerial performance. However, by dividing into groups, it does not indicate the causation relationship except that of the group of Taiwanese managers to join the formal budgetary participation. According to different nations and different ways to join in a group by dividing into variable groups, with an advanced research, it reveals that the relevant coefficient of organizational commitment and managerial performance is positive for Japanese managers. Moreover, the relevant coefficient of the group of informal budgetary participation is much higher than that of the group of formal budgetary participation. Thus, it proves that Japanese managers prefer to the informal budgetary participation, which matches the assumption of studies. For Japanese companies, the pattern to make decisions depends on the agreement of each member, and the managers prefer to cooperate with them in private (NEMAWASHI). For Budgetary Participation, it is just formal. Although the relevant coefficient of budgetary participation and organizational commitment for Taiwanese managers shows the positive aspects, it is impossible to achieve the indirect affection to increase the managerial performance within the use of organizational commitment. It indicates that Taiwanese managers can¡¦t possess the power to make decisions in the Japanese companies. Though they join those formal meetings of budgetary participation, they still can¡¦t increase managerial performance without any incentives. Therefore, it is not ideal to establish the budge of each department in a company only to encourage them to join meetings. It is to reward them or to give them spiritual support that can increase the managerial performance. This research can provide Japanese companies in Taiwan with the most important references to design or implement the budgetary system in achieving the expected goal.

The relationship between budgetary participation, budgetary slack and performance has received a great deal of attention in the literatures of management accounting. However, there is a little consistent conclusion in the relationship between budgetary participation, budgetary slack and performance. Behavior accounting researchers using the Contingent Theory in order to conciliate these inconsistent conclusions also confound contrary results (such as Merchant (1985) and Dunk (1993)). This study suggested that the perceived cause of budgetary participation and the cognitive functions of budgetary participation are important determinants of propensity to create budgetary slack and performance. In addition, this study considered the influence of procedural justice about budgetary decision on budgetary slack and performance. We proposed that there are three actions of participator in the process of participation. The first, subordinate would review the surroundings around themselves like environment uncertainty, task uncertainty, budgetary emphasis, role ambiguity and information asymmetry. The second, subordinates will think the need of functions of participation. The surrounding variables will influence the cognitive functions of participation. Finally, they will decide the subsequent action (in this study we discuss the propensity of budgetary slack and performance). We gathered data from 174 subordinate managers working in the publicly owned companies in Taiwan and used LISREL to test our hypotheses. The results of this study revealed that 1.The cause of budgetary of participation is imperative factor influencing the need of the functions of budgetary participation. The environment uncertainty, task uncertainty, role ambiguity and information asymmetry has positively direct influence on the need of informational effect of budgetary participation respectively. Budgetary emphasis has positively direct influence on the need of affective/motivational effect of budgetary participation. 2.The informational effect of budgetary participation was directive associated with budgetary slack. However, the affective/motivational effect of budgetary participation was indirectly related to budgetary slack through procedural justice. 3. The affective/motivational effect of budgetary participation was directive associated with performance. However, the informational effect of budgetary participation was indirectly related to performance through procedural justice and affective/motivational effect of budgetary participation. We anticipated that the result of this study could offer insight into the relationship between budgetary participation, slack and performance. In addition, we expect to give some suggestions to firms that implement participatory budgeting system to avoid dysfunctional behavior of employees and to encourage performance.

For decades, two key characteristics in budgeting system-budgetary participation and budgetary emphasis have been intensively discussed in previous management accounting studies. Although previous literature suggested that budgetary participation and budgetary emphasis have positive effects on mangers¡¦ effectiveness, they provided inconsistent and piecemeal evidence. This study attempts to investigate the influences of budgetary participation and emphasis on managerial effectiveness and on slack and to propose a comprehensive model in order to clarify the relationships of intervening variables among budgetary participation and emphasis on managerial effectiveness and slack. This study employs social-cognitive theory (SCT) (Bandura, 1977) and affective events theory (AET) (Weiss & Cropanzano, 1996) to investigate the relationships between budgetary participation, budgetary emphasis, managerial effectiveness and budgetary slack. According to social cognitive theory, this study suggests that budgetary participation and emphasis enhance managers¡¦ self-efficacy, and then improves managerial performance and job satisfaction. According to AET, this study suggests that budgetary participation implies positive affective events which effectively influence managers¡¦ attitudes-trust in superior and organizational commitment, in turn improve their performance and satisfaction. However, budgetary emphasis is implied as a negative affective event, which may influence managers¡¦ attitudes. In other words, self-efficacy, trust in superior and organizational commitment play critical intervening roles among the relationships budgetary participation, budgetary emphasis, managerial performance, job satisfaction and budgetary slack. In addition, the relationships between the intervening variables and between outcome variables are also explored. Finally, this study proposes a comprehensive budgetary participation¡¦s ¡¥cognitive-attitude-effectiveness¡¦ model. Eighteen hypotheses are proposed. Structural equation modeling was used to test the theoretical models with the 164 responses which were randomly drawn from the listing company in Taiwan Stock Exchange. The results validate the following relationships: 1.Budgetary participation and budgetary emphasis have indirect effects on managerial performance and job satisfaction through self-efficacy. 2.Budgetary participation has indirect effects on managerial performance and job satisfaction through affective attitudes-trust in superior and organizational commitment. 3.Budgetary participation enhances self-efficacy and then improving managers¡¦ attitudes. 4.Budgetary emphasis directly influences budgetary slack. 5.Managers¡¦ trust in superior enhances their organizational commitment. 6.Managers¡¦ job satisfaction improves their performance. Although the relationship between trust in superior and managerial performance is not supported in the comprehensive model, the mediating roles of self-efficacy, trust and organizational commitment are validated. In other words, the cognitive and attitudinal effects of budgetary participation are supported in this study. However, this study suggests a positive path from budgetary slack toward job satisfyaction, which implies that proper slack may result in higher managers¡¦ job satisfaction. This study provides suggestions for future researches and management implications for practical business managements.