THE GLOBAL DEBATE ON BUDGETING: EMPIRICAL EVIDENCE FROM NIGERIA
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Date
2009
Journal Title
Journal ISSN
Volume Title
Publisher
University Dar es Salaam Business School, University Dar es Salaam, Tanzania
Abstract
Empirical evidence from developed economies providesthat budgeting is a veritable tool for planning, controling, coordinating, communicating, evaluating andimproving performance and decision making. On the other hand, some experts have mounted wide-ranging criticism of the manner in which budgetary systems are typically implemented. It is claimed that budgeting is not a worthwhile exercise, adds no value to organizations, managers are dissatisfied with it, and therefore it should be abandoned. However, the main focus of this research is to provide empirical evidence from a developing economy onthe relevance of the budgetary system.Aprimary source of data was used and data were collected through the use of a questionnaire. Altogether, a total of one hundred and ten completed questionnaires from nine selected manufacturing companies were analyzed. A Non-Parametric test and descriptive statistics were used for data analysis.This study showsthat,though the budgetary system is not perfect, its usefulness cannot be over-emphasized. The study reveals that budgeting is perceived by managers as aworthwhile exercise and a value-creation process. It is recommended therefore that research should be directed towards improving the budgetary system rather than totallyabandoningit.
Description
Keywords
Traditional budgeting, Budget criticisms, Empirical evidence from Nigeria
Citation
25. Abogun, S. & Fagbemi, T.O. (2009): The global debate on budgeting: empirical evidence from Nigeria. Business Management Review. 13 (1); 1-13