This study aimed to examine the effect of positive and negative feedback on budgetary slack and the interaction between feedback and self-efficacy on budgetary slack under a condition of information asymmetry. Preliminary researches have tested various ways of mitigating budgetary slack practices, which did not separate the effects of positive and negative feedback. This study hypothesized that positive feedback minimizes the potential for budgetary slack under conditions of information asymmetry—and vice versa. Additionally, high self-efficacy reinforces positive feedback in reducing budgetary slack under conditions of information asymmetry—and vice versa. By employing experimental data, this study documented the results that positive feedback significantly minimizes (the potential for budgetary slacking under conditions of information asymmetry—and vice versa. However, there is no difference in the average budget slack on managers with high or low self-efficacy, who get positive feedback.

Bahasa Abstract

Tujuan penelitian ini adalah menguji pengaruh umpan balik positif dan negatif terhadap senjangan anggaran serta pengaruh efikasi diri terhadap hubungan keduanya pada kondisi informasi asimetri. Penelitian terdahulu telah menguji berbagai cara mitigasi praktik senjangan anggaran, tetapi penelitian tersebut belum memisahkan antara umpan balik positif dan negatif. Penelitian ini memprediksi umpan balik positif (negatif) akan memperkecil (memperbesar) potensi senjangan anggaran pada kondisi informasi asimetri, dan efikasi diri tinggi akan memperkuat umpan balik positif (negatif) dalam mengurangi (meningkatkan) senjangan anggaran pada kondisi informasi asimetri. Berdasarkan data eksperimen, penelitian ini mendokumentasikan hasil bahwa umpan balik positif (negatif) dapat secara signifikan memperkecil (memperbesar) potensi senjangan anggaran pada kondisi informasi asimetri. Namun, tidak ada perbedaan rata-rata senjangan anggaran pada manajer dengan efikasi diri tinggi maupun rendah yang mendapatkan umpan balik positif.


Achterkamp, R., H. J. Hermens, and M. M. R. Vollenbroek-Hutten. 2015. The Influ-ence Of Success Experience On Self-Efficacy When Providing Feedback Through Technology. Computers in Human Behaviour, 52, 419-423.
Ahmad, N. N. N., Sulaiman, and Alwi. 2003. Are Budgets Useful? A Survey Of Malaysian Companies. Mana-gerial Auditing Journal.
Anthony, R. N., and V. Govindarajan. 2009. Sistem Pengendalian Manajemen. Jakarta: Salemba Empat.
Bandura, Albert. 1977. Self-Efficacy: Toward a Unifying Theory of Behavioral Change. Psychological Review, 84 (2) 191-215.
Bandura, Albert. 1999. Social Cognitive Theory: An Agentic Perspective. Asian Journal of Social Psychology, 2, 21-41.
Belschak, F. D., and N. D. H. Deanne. 2009. Consequences of Positive and Negative Feedback: The Impact on Emotions and Extra-Role Behaviours. Applied Psycho-logy: An International Review, 58 (2), 274-303.
Brown, M. et al. 2016. “Managerial tactics for communicating negative performance feedback. Personal Review, 45 (5), 969-987.
Carver, C. S., and P. H. Blaney, and M. F. Scheier. 1979. Reassertion and Giving Up: The Interactive Role of Self-Directed Attention and Outcome Expectancy. Journal of Personality and Social Psychology, 37 (10), 1859-1870.
Carver, C.S., and M. F. Scheier. 1990. Origin and Functions of Positive and Negative Affect: A Control-Process View. Psychological Review, 97 (1), 19-35.
Cervone, D., and R. Wood. 1995. Goals, Feedback, and the Differential Influence of Self-Regulatory Processes on Cognitively Complex Performance.
Cognitive Therapy and Research, 19 (5), 519-545.
Chen, C. C., and K. T. Jones. 2004. Budgetary Slack and Performance in Group Participative Budgeting: The Effects of Individual and Group Perfor-mance Feedback and Task Interde-pedence. Advances in Management Acccounting, 183-221.
Chen, G., S. M. Gully, and D. Eden. 2001. Validation of a New General Self-Efficacy Scale. Organizational Research Methods, 4 (1), 62-83.
Chen, Mien-Ling. 2012. The Effects of Leader Reward and Punishment Behaviors on Subordinates’ Budget Reports. The Engineering Economist, 57, 41-54.
Chong, V. K., and I. Ferdiansyah. 2012. An Experimental Investigation on the Effect of Feedback Control Policy and Need for Achievement on Subordinates’ Budge-tary Slack Creation. Asia-Pacific Management Accounting Journal.
Chong, V. K., and I. Ferdiansyah. 2011. The Effects of Trust-in-Superior and Truth-fulness on Budgetary Slack: An Experimental Investigation. Ad-vances in Management Accounting, Volume 19, 55-73.
Chow, C. W., J. C. Cooper, and W. S. Waller. 1988. Participative Budgeting: Effects of a Truth-Inducing Pay Scheme and Information Asymmetry on Slack and Performance. The Accounting Review, 53 (1).
Cowan, D. T., and I. M. Taylor. 2015. The Importance Of Disaggregating Within-Person Changes And Individual Diffe-rences Among Internalized Motives, Self-Esteem And Self-Efficacy. Motif emot 39, 489-497.
Daniels, J. A., and L. M. Larson. 2001. The Impact of Performance Feedback on Counseling Self-Efficacy and Counselor Anxiety. Counselor Education & Supervision Vol. 4.
Douglas, P. C., and B. Wier. 2000. Integrating Ethical Dimensions into a Model of Budgetary Slack Creation. Journal of Business Ethics, 28, 267-277.
Dunk, Alan S. 1993. The Effects of Budget Emphasis and Information Asymmetry on the Relation between Budgetary Participation and Slack. The Accounting Review, 68 (2), 400-410.
Erez, Miriam. 1977. Feedback: A Necessary Condition for the Goal Setting-Performance Relationship. Journal of Applied Psychology, 62 (5), 624-627.
Faria, J. A., and Silva. 2013. The Effects Of Information Asymmetry On Budget Slack: An Experimental Research African Journal of Business Mana-gement, 7 (13), 1086-1099.
Fast, N., E. R. Burris, and C. A. Bartel. 2014. Managing to Stay in the Dark: Managerial Self-Efficacy, Ego Defen-siveness, and the Aversion to Employee Voice. Academy of Management Journal, 57 (4), 1013-1034.
Finkelstein, S. R., and A. Fishbach. 2012. Tell Me What I Did Wrong: Experts Seek and Respond to Negative Feedback. Journal of Consumer Research, Inc, 39.
Fisher, J. G. et al. 2002. Using Budgets for Performance Evaluation: Effects of Resource Allocation and Horizontal Information Asymmetry on Budget Proposals, Budget Slack, and Perfor-mance. The Accounting Review, 77 (4), 847-865.
Hattie, J., and H. Timperley. 2007. The Power of Feedback”. Review of Educational Research, 77(1),. 81-112.
Hobson, J. L., M. J. Mellon, and D. E. Stevens. 2011. Determinants of Moral Judgments Regarding Budgetary Slack: An Experimental Examination of Pay Scheme and Personal Values.
Behavioral Research in Accounting, 23 (1), 87-107.
Ilies, R., I. E. De Pater, and T. Judge. 2007. Differential affective reactions to negative and positive feedback, and the role of self esteem. Journal of Managerial Psychology, 22 (6), 590-609.
Joshi, P. L., and J. Abdulla. 1996. Budgetary Control and Performance Evaluation Systems in Corporations in Bahrain. Asian Review of Accounting, 4 (2).
Karl, K. A., A. M. O’Learly-Kkelly, and J. J. Martocchio. 1993. The Impact Of Feedback And Self-Efficacy On Performance In Training. Journal of Organizational Behaviour, 14, 379-394.
Klein, H. J. 1989. An Integrated Control Theory Model of Work Moivation. Management Review, 14 (2), 150-172.
Klunger, A. N., and A. DeNisi. 1996. The Effects of Feedback Interventions on Performance: A Historical Review, a Meta-Analysis, and a Preliminary Feed-back Intervention Theory. Psychological Bulletin, 119 (2), 254-284.
Kren, Leslie. 2003. Effects of Uncertainty, Participation, and Control System Monitoring on the Propensity to Create Budget Slack and Actual Budget Slack Created. Advances in Management Accounting, 11, 143-167.
Kren, L., and A. S. Maiga. 2007. The Intervening Effect of Information Asymmetry on Budget Participation and Segment Slack. Advances in Mana-gement Accounting, Vol. 16, 141-157.
Lau, C. M., and I. R. C. Eggleton. 2003. The Influence Of Information Asymmetry And Budget Emphasis On The Relationship Between Participation And Slack. Accounting and Business Research, 33 (2), 91-104.
Libby, Theresa. 2003. The Effect of Fairness in Contracting on the Creation of Budgetary Slack. Advances in Accounting Behavioural Research, 6, 145-169.
Lingnan, P. W., and K. Leung. 2000. Negative Feedback and Responses from Subordinates. Journal of Human Resource Costing and Accounting, 5 (1), 37-44.
Lukka, Kari. 1988. Budgetary Biasing in Organizations: Theoretical Framework and Empirical Evidence. Accounting Organizations and Society, 13 (3), 281-301.
Maddy III, et al. 2015. The Effects Of Social Support On Self-Esteem, Self-Efficacy, And Job Search Efficacy In The Unemployed. Journal of Employment Conseling, 52.
Mesch, D. J., F. Jiing-Lih, and P. M. Podsakoff. 1994. Effects of Feedback Sign on Group Goal Setting, Strategies, and Performance. Group of Organi-zation Management, 19 (3), 309-333.
Nahartyo, Ertambang. 2013. Desain dan Implementasi Riset Eksperimen. Yogyakarta: UPP STIM YKPN.
Nease, A. A., B. O. Mudgett, and M. A. Quinones. 1999. Relationship Among Feedback Sign, Self-Efficacy, and Acceptance of Performance Feedback. Journal of Applied Psychology, 84 (5), 806-814.
Nicklin, J. M., and K. J. Williams. 2011. Self-Regulation of Goals and Performance: Effects of Discrepancy Feedback, Regulatory Focus, and Self-Efficacy. Psychology, 2 (3), 187-201.
Nouri, Hossein. 1994. Using Organizational Commitment and Job Involvement to Predict Budgetary Slack: A Research Note. Accounting Organizational and Society, 19 (3).
Olayiwola. 2011. Self-Efficacy as Predictor of Job Performance of Public Secondary School Teachers in Osun State. Ife Psychologia, 9 (1).

Onsi, Mohamed. 1973. Factor Analysis of Behavioral Variables Affecting Budgetary Slack. The Accounting Review, 48 (3), 535-548.
Philips, J. M., J. R. Hollenbeck, and D. R. Ilgen. 1996. Prevalence and Prediction of Positive Discrepancy Creation: Examining a Discrepancy between Two Self-Regulation Theories. Journal of Applied Psychology, 81 (5), 498-511.
Reynolds, Dennis. 2006. To What Extents Does Performance-Related Feedback Affect Managers’ Self-Efficacy?. Hospitality Management 25, 54-68.
Robertson, I. T., and G. Sadri. 1993. Managerial Self-efficacy and Mana-gerial Performance. British Journal of Management, 4, 37-45.
Rodríguez, G., and D. Naranjo-Gil. 2016. Effects Of Trust And Distrust On Effort And Budgetary Slack: An Experiment. Management Decision, 54 (8), 1908-1928.
Rodríguez, G., and D. Naranjo-Gil. 2016. Effects Of Trust And Distrust On Effort And Budgetary Slack: An Experiment. Management Decision, 54 (8), 1908-1928.
Schmidt, A. M., and R. P. DeShon. 2009. Prior Performance and Goal Progress as Moderators of the Relationship Between Self-Efficacy and Performance. Human Performance, 22, 191-203.
Sitzmann, T., and G. Yeo. 2013. A Meta-Analytic Investigation of the Within-Person Self-Efficacy Domain: Is Self-Efficacy A Product of Past Performance or a Driver of Future Performance?. Personnel Psychology, 66, 531-568.
Stede, Wim A.Van der, 2000. The Relationship Between Two Conse-quences Of Budgetary Controls: Budgetary Slack Creation And Managerial Short-Term Orientation. Accounting, Organizations and Society, 609-622.
Vancouver, J. B. et al. 2014. Finding a Between-Person Negative Effect of Self-Efficacy on Performance: Not Just a Within-Person Effect Anymore. Human Performance, 27, 243-261.
Vancouver, J. B. 2005. The Depth of History and Explanation as Benefit and Bane for Psychological Control Theories. Journal of Applied Psychology, 90 (1), 38-52.
Vancouver, J. B. et al. 2002. Two Studies Examining the Negative Effect of Self-Efficacy on Performance. Journal of Applied Psychology, 87 (3), 506-516.
Vancouver, J. B. et al. 2001. The Changing Signs in the Relationship Among Self-Efficacy, Personal Goals, and Perfor-mance. Journal of Applied Psychology, 86 (4), 605-620.
Wood, R., and A. Bandura. 1989. Social Cognitive Theory of Organizational Management. The Academy of Mana-gement Review, 14 (3), 361-384.
Young, S. Mark. 1985. Participative Budgeting: The Effects of Risk Aversion and Asymmetric Information on Budgetary Slack. Journal of Accounting Research, 23 (2).
Yuen, Desmond C. Y. 2004. Goal Characteristics, Communication And Reward Systems, And Managerial Propensity To Create Budgetary Slack. Managerial Auditing Journal, 19 (4), 517-532.
Zheng, X. et al. 2013. Positive And Negative Supervisor Developmental Feedback And Task-Performance. Leadership & Organization Development Journal, 36 (2), 212-232.