Participative budgeting plays an important role for information communication among hierarchies in organizations. In this study, I use a lab experiment to examine three research questions and investigate the role of supervisors in influencing subordinate honesty. First, I predict and find support that supervisory behavioral integrity, i.e. the alignment between a superior’s communication of a value of honesty and the superior’s behavioral honesty, is an effective informal control mechanism to influence employee honesty. However, the effectiveness of supervisory behavioral integrity in influencing employee honesty depends on the presence of shared financial interests between the superior and the subordinates, such that high supervisory behavioral integrity may promote employee honesty only in the presence of shared financial interests. In the absence of shared financial interests, supervisory behavioral integrity is no longer effective in influencing employee honesty. Finally, I investigate whether supervisory behavioral integrity, compared to supervisory behavioral honesty, has incremental effect on subordinate honesty. The results suggest that, compared to supervisory behavioral honesty, supervisory behavioral integrity has a stronger influence on subordinate honesty. Furthermore, high supervisory behavioral honesty is shown to have a demotion effect on subordinate honesty, i.e. subordinate honesty is lower when superior’s honesty is high than when it is low. Supplemental analysis provides potential explanations for the demotion effect. The implications of the findings for management accounting research and practice are discussed.
| Identifer | oai:union.ndltd.org:GEORGIA/oai:scholarworks.gsu.edu:accountancy_diss-1016 |
| Date | 14 August 2015 |
| Creators | Zhang, Zhen |
| Publisher | ScholarWorks @ Georgia State University |
| Source Sets | Georgia State University |
| Detected Language | English |
| Type | text |
| Format | application/pdf |
| Source | Accountancy Dissertations |
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