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Cooperation in the Budgeting Process
Author(s) -
Chen Qi
Publication year - 2003
Publication title -
journal of accounting research
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 6.767
H-Index - 141
eISSN - 1475-679X
pISSN - 0021-8456
DOI - 10.1046/j.1475-679x.2003.00123.x
Subject(s) - principal (computer security) , process (computing) , business , accounting , process management , economics , computer science , operating system
In this article I analyze the role of cooperation between firm divisions in the budgeting process. I study a setting in which cooperation is a necessary condition for information sharing among division managers, which in turn benefits the principal. The results in this article can help reconcile the differing views between practitioners and academic researchers on the desirability of cooperation in the budgeting process. The results also have implications for some common budgeting processes observed in practice, including bundling budgeting and bottom‐up budgeting.