Religion, Religiosity and Slack Creation: Some Empirical Evidence.

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Shayuti Mohamed Adnan Maliah Sulaiman

Abstract

Given that the ethical paradigms and the personal characteristics of managers serve as internally mediated controls for slack creation, our study examines if religion and religiosity influence the propensity of managers to create budgetary slack. We focus on Islam primarily because Islam does not recognize the divide between religious and worldly affairs. Accordingly, we argue that Islam may influence a manager’s propensity to create slack. Data was collected using a questionnaire survey. To control for variation effects, questionnaires were sent to 91 managers of just one company, a Malaysian based Korean company. We found no significant difference between the slack created by Muslim and non-Muslim managers. Thus, it appears that Muslims and non-Muslims are no different where business matters are concerned. Further, given that religiosity may have a bearing on a manager’s propensity to create slack, we also examined the relationship between religiosity and the propensity to create slack amongst Muslim managers. The results, although not significant, revealed that the more religious a manager is, the lesser the propensity to create slack. Possible reasons for the findings are discussed.
Keywords: Islam, budget slack, religion, religiosity, Malaysia

Article Details

How to Cite
MOHAMED ADNAN, Shayuti; SULAIMAN, Maliah. Religion, Religiosity and Slack Creation: Some Empirical Evidence.. Asia-Pacific Management Accounting Journal, [S.l.], v. 1, n. 1, p. 49-66, dec. 2006. ISSN 2550-1631. Available at: <http://arionline.uitm.edu.my/ojs/index.php/APMAJ/article/view/356>. Date accessed: 19 jan. 2018.
Section
Management Accounting