How does the simultaneous use of forecasting and budget targets affect the controller?
Type
conference paper
Date Issued
2018
Author(s)
Abstract (De)
We examine how forecasting capabilities and the emphasis on meeting the budget increases or decreases the role conflict of the business unit controller, which is in turn positively related to data misreporting. The existing literature has explored the two predominant roles or functions of the controller, decision-making and corporate control. Nevertheless, no research has looked at how the control system affects the controller. The literature suggests that better forecasting capabilities alleviates the controller’s role conflict, while emphasis on meeting the budget increases the role conflict. Moreover, we also assume that emphasis on corporate control could alleviate potential role conflicts since the controller has more power to withstand requests to engage in unethical behaviour. We want to test our predictions by surveying senior business unit controllers in large decentralized organizations.
Language
English
HSG Classification
contribution to scientific community
Event Title
ERMAC 2018
Event Location
Vienna
Subject(s)
Division(s)
Contact Email Address
oliver.hegers@unisg.ch
Eprints ID
254876
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180610_RC_Paper_V1_2pager.pdf
Size
82.32 KB
Format
Adobe PDF
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