Does the Level of Religiosity Determine Budgetary Slacks Behavior as the Result of Superrior’s Pressure?

  • Made Aristia Prayudi Economics and Accounting Department, Universitas Pendidikan Ganesha, Bali, Indonesia
  • Nyoman Ari Surya Dharmawan Graduate Program of Accounting, Universitas Brawijaya Malang, Jawa Timur, Indonesia
Keywords: budgetary slack; obedience pressur; religiosity; governmental organization.


This study aimed to investigate budgetary slack behavior due to obedience pressure to authority in governmental organization. This study also evaluates the role of religiosity in determining budgetary slack creation in such situation. The results of experiment with 64 undergraduate students as participants indicate that majority of participants obeyed the order of their immediate superior to create budgetary slack in violation of organization policy. This study also found that participants’ level of religiosity do have impact on their actual behavior to create budgetary slack. Participants with high level of religiosity are documented to create smaller amount of budgetary slack than those who have low level of
religiosity when faced with obedience pressure from their superior.


Andre, S. M., Lam, M., & O’Donnell, M. (2014). The Effect of Type and Direction of Influence Tactic on Managers’ Willingness to Add Budgetary Slack.Paper presented at the Northeastern Association of Business, Economics and Technology Proceedings, Days Inn State College, Pennsylvania.

Arli, D., & Tjiptono, F. (2014). The End of Religion? Examining the Role of Religiousness, Materialism, and Long-Term Orientation on Consumer Ethics in Indonesia. Journal of Business Ethics, 123, 385-400. doi: 10.1007/s10551-013-1846-4

Boddy, C. R. (2011). Corporate Psychopaths: Organisational Destroyers(1sted.). New York: Palgrave Macmillan.Brammer, S., Williams, G., & Zinkin, J. (2007). Religion and Attitudes to Corporate Social Responsibility in a Large Cross-Country Sample. Journal of Business Ethics, 71, 229-243.

Busch, T., & Gustafsson, O. (2002). Slack in The Public Sector: A Comparative Analysis of a Private and a PublicEnterprise for Refuse Collection. Public Management Review, 4(2), 167-186.

Colbran, N. (2010). Realities and Challenges in Realising Freedom of Religion or Belief in Indonesia. The International Journal of Human Rights, 14(5), 678-704. doi: 10.1080/13642980903155166

Davis, S., DeZoort, F. T., & Kopp, L. S. (2006). The Effect of Obedience Pressure and Perceived Responsibility on Management Accountants’ Creation of Budgetary Slack. Behavioral Research In Accounting, 18, 19-35.

Dyreng, S. D., Mayew, W. J., & Williams, C. D. (2012). Religious Social Norms and Corporate Financial Reporting. Journal of Business Finance and Accounting, 3(4), 845-875.

Grediani, E., & Sugiri, S. (2010). Pengaruh Tekanan Ketaatan dan Tanggung Jawab Persepsian pada Penciptaan Budgetary Slack.Paper presented at the Simposium Nasional Akuntansi XIII, Purwokerto, Jawa Tengah.

Hartmann, F. G. H., & Maas, V. S. (2010). Why Business Unit Controllers Create Budget Slack: Involvement in Management, Social Pressure, and Machiavellianism. Behavioral Research In Accounting, 22(2), 27-49.

Julianto, I. P., & Prayudi, M. A. (2016). Menakar Rasionalitas dalam Proses Pengukuran Kinerja dan Pengalokasian Sumberdaya Organisasi Sektor Publik. Berkala Akuntansi dan Keuangan Indonesia, 1(2), 106-124.

Kum-Lung, C., & Teck-Chai, L. (2010). Attitude towards Business Ethics: Examining the Influence of Religiosity, Gender and Education Levels. International Journal of Marketing Studies, 2(1), 225-232.

Latif, A., Abideen, Z. U., & Nazar, M. S. (2011). Individual Political Behavior in Organizational Relationship. Journal of Politics and Law, 4(1), 199-210.

Leventis, S., Dedoulis, E., & Abdelsalam, O. (2015). The Impact of Religiosity on Audit Pricing. Journal of Business Ethics(forthcoming). doi: 10.1007/s10551-015-3001-x

Lippman, L. H., & Keith, J. D. (2006). The Demographics of Spirituality Among Youth: International Perspective. In E. C. Roehlkepartain, P. E. King, L. Wagener, & P. L. Benson (Eds.), The Handbook of Spritual Development in Childhood an Adolescence(pp. 109-140). Thousand Oaks, California: Sage Publication, Inc.

Loe, T. W., Ferrell, L., & Mansfield, P. (2000). A Review of Empirical Studies Assessing Ethical Decision Making in Business. Journal of Business Ethics, 25, 185-204.

McGuire, S. T.,Omer, T. C., & Sharp, N. Y. (2011). The Impact of Religion on Financial Reporting Irregularities. The Accounting Review, 87(2), 645-647.

Milgram, S. (1963). Behavioural Study Of Obedience. Journal of Abnormal and Social Psychology, 67(4), 371-378.

Murphy, P. R., & Dacin, M. T. (2011). Psychological Pathways to Fraud: Understanding and Preventing Fraud in Organizations. Journal of Business Ethics,

Pace, S. (2014). Effects of Intrinsic and Extrinsic Religiosity on Attitudes toward Products: Empirical Evidence of Value-Expressive and Social-Adjustive Functions. The Journal of Applied Business Research, 30(4), 1227-1228.

Peterson, G. R. (2001). Think Pieces, Religion as Orienting Worldview. Zygon: Journal of Religion and Science, 36(1), 5-19.

Pew Research Center. (2008). Unfavorable Views of Jews and Muslims on the Increase in Europe. Washington: Pew Research Organization.

Prayudi, M. A., & Narsa, M. (2015). Penerapan Standar Akuntansi Nasional Pada Organisasi Nirlaba Bidang Sosial Kemanusiaan di Bali. Jurnal Akuntansi dan Investasi, 16(2), 110-120.

PricewaterhouseCoopers (PwC). (2010). Fraud in The Public Sector. Australia: PwC Forensics Services.

Rahim, S., Subroto, B., Rosidi, & Purnomosidhi, B. (2013). Gender Differences on the Influence of Ethical Judgment and Moral Reasoning toward Budget Slack Behavior in Public Sector. Interdisciplinary Journal of Contemporary Research in Business, 5(2), 227-241.

Rashid, M. Z., & Ibrahim, S. (2007). The Effect of Culture and Religiosity on Business Ethics: A Cross-cultural Comparison. Journal of Business Ethics, 82, 907-917.

Saat, M. M., Porter, S., & Woodbine, G. (2009). Does Religiosity Influence Ethical Sensitivity? An Investigation on Malaysian Future Accountants. Malaysian Accounting Review, 8(2), 7-41.

Sarwono, S. S., & Armstrong, R. W. (2001). Microcultural Differences and International Business Perspective: An International Business Perspective. Journal of Business Ethics, 30, 41-56.

Schouten, C. M.-v. d. D., Graafland, J., & Kaptein, M. (2014). Religiosity, CSR Attitudes, and CSR Behavior: An Empirical Study of Executives’ Religiosity and CSR. Journal of Business Ethics, 123, 437-459.

Vitell, S. J. (2009). The Role of Religiosity in Business and Consumer Ethics: A Review of the Literature. Journal of Business Ethics, 90, 155–167.

Vitell, S. J., Paolillo, J. G. P., & Singh, J. J. (2005). Religiosity and Consumer Ethics. Journal of Business Ethics, 57, 175-181.

Weaver, G. R., & Agle, B. R. (2002). Religiosity and Ethical Behavior in Organizations: A Symbolic Interactionist Perspective. The Academy of Management Review, 27(1), 77-97.

Yılmaz, E., Özer, G., & Günlük, M. (2014). Do Organizational Politics and Organizational Commitment Affect Budgetary Slack Creation in Public Organizations? Procedia -Social and Behavioral Sciences, 150, 241-250.
How to Cite
Prayudi, M., & Dharmawan, N. (2018, October 31). Does the Level of Religiosity Determine Budgetary Slacks Behavior as the Result of Superrior’s Pressure?. Journal of Economics, Business, and Government Challenges, 1(2), 103-115.