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http://dx.doi.org/10.5762/KAIS.2018.19.2.405

The Effect of University Hospital Budgeting System Characteristics on Budgetary Slack  

Jung, Tae-young (Department of Medical & Health Administration, U1 University)
Lee, Seo-joon (BK21PLUS Program in 'Embodiment: Health-Society Interaction', Department of Public Health Sciences, Graduate School, Korea University)
Han, Jae-hoon (Planning & Budget Division, Catholic Medical Center, The Catholic University of Korea)
Publication Information
Journal of the Korea Academia-Industrial cooperation Society / v.19, no.2, 2018 , pp. 405-412 More about this Journal
Abstract
The budget is an essential tool for the systematic management of the organizational performance and for diagnosing the status of an organization. Effective budget execution is important to hospital management due to the nonprofit nature of hospitals. On the other hand, there are few studies regarding the budgetary slack of hospitals in Korea. The purpose of this study was to investigate the effects of the university hospital budgeting system characteristics on the budgetary slack. For this purpose, the data from 118 staff of a university hospital located in Seoul were collected by self-administered surveys. Frequency analysis, correlation analysis, and multiple regression analysis were carried out using Stata Ver. 14. The main results of this study were as follows. First, information asymmetry has a positive influence on the budgetary slack. Second, budget feedback and budget motivation have a negative effect on the budgetary slack. These findings suggest that the sharing of budget-related information among hospital staff is important for efficient hospital management. In addition, it is necessary to establish ways to enhance the feedback and motivation in budgetary activities for managing the budgetary slack systematically. The major strength of this study is that it draws attention to research concerning the budgetary slack of hospitals in the absence of research on the budgetary slack. The significance of this study was to provide an empirical basis for improving the efficiency of hospital management.
Keywords
Budgetary Slack; Budgeting System; Hospital Management; Information asymmetry; Budgetary motivation;
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