Budgetary Slack Framework of Malaysian Local Governments: A Pilot Study

Abstract

The purpose of this paper is to discuss the process of pilot test on a proposed framework before the actual research is conducted. Conducting a pilot study, provide the researcher with the opportunity to develop and enhance skills necessary before commencing the actual study. Pilot study was conducted to assess the reliability and validity of the research instruments. Relying on the extended version of the Theory of Planned Behavior, this study examined whether attitudes, subjective norms, perceived behavioral control, moral obligation, self-efficacy, and peer influence may be a good predictor of the individuals’ intention to engage in budgetary slack creation. Data were collected from 30 department heads of Malaysian local governments using questionnaires. The reliability test revealed that all constructs achieved sufficient level of reliability ranged from 0.771 to 0.963. The descriptive analysis conducted revealed that all constructs have mean score above the value of 3. Result of descriptive analysis suggest that the sampled respondents have favorable attitude toward budgetary slack and believed this behavior to be acceptable during budget planning. Nonetheless, the respondents deemed this behavior to be morally wrong. Findings from this study should be useful to local government agencies and policy makers interested in enhancing good corporate governance practices among public officers especially in minimizing dishonest budget reporting.