This study examines how involving managers in budget setting relates to performance, drawing on data from 415 managers across 13 companies. It uses path analysis to show how participation influences outcomes through information effects and attitude effects, and how various moderating factors can strengthen or weaken the connection.

The book frames participation as more than a simple effort to hit targets. It shows that the strength of the budgeting process depends on the flow of information, perceptions of rewards, and the manager’s confidence and motivation. The analysis connects participation to performance through a structured model, revealing how multiple pathways contribute to results and where the impact is strongest.

How participation affects motivation, reward expectations, and perceived performance control.
The role of information processing and attitude shifts in linking participation to outcomes.
How moderating factors like managerial ability, information asymmetry, budget-reward contingency, and environmental uncertainty change the effect.
Use of path analysis to dissect direct and indirect effects within a real-world management control system.

Ideal for readers of management accounting, organizational behavior, and those interested in how budgeting practices influence managerial effectiveness.

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