The creation of excessive budgetary slack can be costly, causing organizations to implement internal controls to motivate employees to report more honestly. Internal control research explores many control-related motivations; however, the behavioral effects of autonomy in expanded organizational hierarchies are not well understood in budgeting contexts. This paper examines managerial autonomy and firms’ rationales for the implementation of internal controls in a setting that extends the common participatory dyad utilized in prior literature to an organizational hierarchy that includes owners, mid-level managers, and employees. This setting is explored through the lens of self-determination theory and psychological reactance theory, which offer complementary yet opposite conceptualizations of autonomy. This paper posits that owner restrictions on mid-level manager autonomy can spillover and indirectly influence budgeting decisions. Additionally, the potential for this spillover to influence the relationship between a firm’s rationale for the implementation of internal controls and subsequent budgetary decisions is examined. Findings indicate that the autonomy of mid-level managers has a spillover effect that influences manager’s rejection rates between rounds, but not across rounds and does not interact with a firm’s control implementation rationale.

The Affordable Care Act (ACA), passed on March 23rd, 2010, contains widesweeping legislation aimed at reforming the current U.S. healthcare system. The ACA has been lauded by its proponents and deeply criticized by its opponents. The current paper included two experimental studies designed to test if the individual insurance mandate requirement is a specific source of the psychological and behavioral resistance displayed toward the ACA. In study 1 the individual insurance mandate requirement did not produce greater negative attitudes towards the ACA or the current Presidential administration and it did not predict attitudes towards the longevity of the ACA. Democrats were found to have significantly less negative attitudes towards the ACA and towards the longevity of the ACA and Democrats also reported a lower likelihood of the ACA being repealed in comparison to Independents, Republicans or Libertarians. In study 2, the non-significant individual insurance mandate findings from study 1, were replicated in study 2. However, Democrats again were found to have significantly less negative attitudes towards the ACA and towards the longevity of the ACA in comparison to Independents, Republicans and those with no political affiliation. Democrats also indicated that they were less likely to vote for a political candidate who supports the repeal of the ACA in comparison to Independents, Republicans and those with no political affiliation. Implications and future research directions are discussed.

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