THE INFLUENCE OF PARTICIPATIVE BUDGETING ON BUDGETARY SLACK WITH LOCAL CULTURE AND CORPORATE GOVERNANCE AS THE MODERATORS: AN EMPIRICAL STUDY ON RURAL BANKS (BPRS) IN BALI

Abstract

This research is aimed at revealing the moderation of good corporate governance and Tri Hita Karana as a local culture on the relation of participative budgeting towards budgetary slack. The research population is the rural banks in Bali province. The data are analyzed by using Moderated Regression Analysis. The results provide empirical evidence suggesting that corporate governance can moderate the relationship of participative budgeting towards budgetary slack, whereas the Tri Hita Karana culture shows no evidence of influence that can moderate the relationship of participative budgeting and budgetary slack.

Keywords

• Сorporate governance
• Tri Hita Karana
• local culture
• budgeting
• budgetary slack