EFFECTS OF PROCEDURAL JUSTICE PERCEPTION, BUDGETARY CONTROL EFFECTIVENESS AND ETHICAL WORK CLIMATE ON PROPENSITY TO CREATE BUDGETARY SLACK

ABSTRACT

This study examines the effects of procedural justice, budgetary control effectiveness and ethical work climate on propensity to create budgetary slack in public institutions in Edo State. The population of this study consist of the staff of the bursary department in public institutions in Edo state. The data is obtained through questionnaire responded by forty six (46) staff in the Bursary Department in the University of Benin. The Ordinary Least Square method was adopted for this study and the Statistical Package for Social Sciences (SPSS) was used for the data analysis. This method was used because it estimates the relationships between one or more independent variable and a dependent variable. The study shows a positive and statistically significant relationship among procedural justice perception, budgetary control effectiveness and propensity to create budgetary slack. On the other hand, the study finds that there is no statistical significant relationship between ethical work climate and propensity create budgetary slack in public institutions. The study recommends that institutions should focus on fostering a procedural justice-oriented environment, periodically assess and reinforce ethical values and practices and budgetary control systems to ensure effectiveness and minimize opportunities for budgetary slack.