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Budgeting in Multinational Companies:Empirical Evidence in Slovene Parent Companies

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  • Maja Zaman

    (Faculty of Economics, University of Ljubljana, Slovenia)

Abstract

A growing number of foreign subsidiaries, established by Slovene parent companies, has motivated Slovene researchers to look deeper into the parent – subsidiary relationship. The article is focused on this relationship in the budgeting process, especially on the question of participation of foreign subsidiary’s management in this process. No theoretical recommendation on the optimal level of participation exists. We claim that at least three factors must be taken into consideration when determining the level of participation: 1) motivation, 2) culture and 3) level of uncertainty in the foreign subsidiary’s environment. Empirical evidence presented in the article is based on a recent research, which was carried out in year 2003 among medium-sized and large Slovene parent companies.

Suggested Citation

  • Maja Zaman, 2005. "Budgeting in Multinational Companies:Empirical Evidence in Slovene Parent Companies," Zagreb International Review of Economics and Business, Faculty of Economics and Business, University of Zagreb, vol. 8(2), pages 83-96, November.
    • Handle: RePEc:zag:zirebs:v:8:y:2005:i:2:p:83-96
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    More about this item

    Keywords

    management control; budgeting; performance evaluation; participation; motivation;
    All these keywords.

    JEL classification:

    • M41 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - Accounting

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