Improving Managerial Performance through Participation Role of Budget Preparation: a Theoretical and Empirical Overview

Both profit and nonprofit entity could gain the benefit from planning and control that is provided by the budget. In preparing the budget, it is good to differenciate the needs with the availability of budget, therefore, it will be executed properly with participative budgeting system. Many accounting management studies pay attention on the issue of participation budgeting in relation to managerial performance and produce opposition empirical results. The difference in the results of empirical studies occurs because the relationship of budget participation and managerial performance depend on situational factors, or better known as a Contingency Variable.