Are budgets useful? A survey of Malaysian companies

Nik Ahmad, Nik Nazli and Sulaiman, Maliah and Mohd Alwi, Norhayati (2003) Are budgets useful? A survey of Malaysian companies. Managerial Auditing Journal, 18 (9). pp. 717-724. ISSN 0268-6902

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Abstract

This study examines if budgets are still used in Malaysian companies. There are two divergent views on the usefulness of budgets. Proponents of budgets argue that they are still relevant and useful. Meanwhile, critics claim that budgets are obsolete. They study uses the instrument developed by Drury et al. Results are compared to those of Guilding et al. The results show that budgeting practices in Malaysia are similar to those in the UK and New Zealand. There are only three major differences. First, Malaysian managers appear to feel that a participative approach to budgeting may encourage budget padding. Second, a much higher percentage of respondents compared to the Guilding et al's study, agree that top management should evaluate performance mainly on ability to achieve budgetary goals. Finally, companies in Malaysia appear to use flexible budgets more than those in the UK and New Zealand.

Item Type:	Article (Journal)
Additional Information:	1371/59268
Uncontrolled Keywords:	Budgets Malaysia, Participative planning, Performance measurement (quality)
Subjects:	H Social Sciences > HF Commerce > HF5001 Business. Business Administration H Social Sciences > HF Commerce > HF5001 Business. Business Administration > HF5601 Accounting. Bookkeeping
Kulliyyahs/Centres/Divisions/Institutes (Can select more than one option. Press CONTROL button):	Kulliyyah of Economics and Management Sciences > Department of Accounting
Depositing User:	Dr Norhayati Mohd Alwi
Date Deposited:	14 Nov 2017 10:44
Last Modified:	14 Nov 2017 10:45
URI:	http://irep.iium.edu.my/id/eprint/59268

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