Locus of Control as Budget Slack Moderator: The Role of Ethical Leadership and Budget Participation

Authors

N. N. Alsadoni, College of Business Administration, Majmaah University, Al-Majmaah 11952, Saudi ArabiaFollow
A. B. M. Metwally, Department of Accounting, Faculty of Commerce, Assiut University, Assiut 71515, EgyptFollow
S. I. Abdelazim, Department of Accounting, Faculty of Commerce, Beni Suef University, Beni Suef, Egypt\\ Department of Accounting, College of Business Administration, Majmaah University, Al Majma’ah, Saudi ArabiaFollow
S. A. S. Aly, Department of Accounting, Faculty of Commerce, Beni Suef University, Beni Suef, EgyptFollow

Abstract

The current study investigates the impact of Budget Participation and Ethical Leadership on Budget Slack. Further, the study investigates how Locus of Control serves as a moderator. The study sample includes bankers working in the Egyptian banking sector. The study deployed an electronic survey. Of the 384 total distributed questionnaires 275 were retrieved, with a response rate of 71.6%. The final sample for the statistical analysis was 251 questionnaires after all exclusions. For testing hypothesis about the relationship between the study variables simple and multiple regression models were adapted. The study results revealed a negative and significant impact of Ethical Leadership on Budget Slack, while Budget Participation was found to affect Budget Slack behaviour positively and significantly. Furthermore, our study revealed that Locus of Control partially and negatively moderating the correlation between Ethical Leadership and Budget slack. These findings contribute to the organizational behavior and management accounting literature, representing one of the first studies to examine this interdisciplinary relationship and confirm the moderating roles identified in African and Middle Eastern contexts.

Recommended Citation

N. Alsadoni, N.; B. M. Metwally, A.; I. Abdelazim, S.; and A. S. Aly, S. (2023) "Locus of Control as Budget Slack Moderator: The Role of Ethical Leadership and Budget Participation," Information Sciences Letters: Vol. 12 : Iss. 6 , PP -.
Available at: https://digitalcommons.aaru.edu.jo/isl/vol12/iss6/4