Evidence Of Method Effects In Budget-Related Behavior Research

Abstract

Research has revealed numerous budget-related behavior (BRB) dimensions that describe managers’ actions and interactions with their budgetary control systems. This research has been conducted using a survey questionnaire methodology. However, those responding to the questionnaires may do so on a basis other than the specific item content. This paper uses a structural equation approach to investigate systematic response bias in BRB survey type research. Data from Singaporean companies is used to test for the presence of response bias and results confirm this expectation. The implication is that future studies in this context should investigate the structure and potential impact of response bias.