ABSTRACT

The objective of the study was to examine antecedents of participative budgeting. To accomplish this objective, a survey method was used through the distribution of 340 copies questionnaire to lower level and top managers in four organisations but 170 copies were received in Benin City, EDO state, Nigeria. Descriptive statistics, correlation and ordinary least squares regression were used to analyse the data for the study.

The study revealed a positive relationship between task uncertainty and participative budgeting. The results also showed a positive relationship between task interdependence and participative budgeting. Furthermore, the study found a positive relationship between perceived environmental uncertainty and participative budgeting. However, the study found a negative relationship between information symmetry and participative budgeting as well as between organisational structure and participative budgeting. The study recommended that lower level managers should participate actively in their budgeting task so as to reduce task uncertainty. Finally, the study recommended that active participation of lower level managers in organization budgeting process will help to cope with perceived environmental uncertainty