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The Advantages of Budgets: A Survey of Macedonian Legal Entities

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  • Dusica Stevcevska-Srbinoska

Abstract

By surveying legal entities headquartered in the FYR Macedonia, this research investigates the relationship between entity size, the independent variables and the adoption of budgeting, the dependent variable. The study also looks at the perceived advantages and disadvantages of budgeting. In order to obtain basis for the field research, existing literature and empirical results were examined. Then, a survey was carried out by contacting managers and finance staff from the manufacturing, merchandising and service segments. The field data came from a sample of 52 respondents, forming a response rate of 61 percent. The empirical findings indicate that the advantages of using budgets far outweigh the disadvantages and that Macedonian enterprises do not consider using other planning tools as alternative to budgets. Furthermore, the questionnaire demonstrated that there is a positive relationship between company size and the adoption of budgeting practices. This research suggests that budgeting deserves further study given its massive use as a management control tool.

Suggested Citation

  • Dusica Stevcevska-Srbinoska, 2018. "The Advantages of Budgets: A Survey of Macedonian Legal Entities," Business and Economic Research, Macrothink Institute, vol. 8(2), pages 33-55, June.
    • Handle: RePEc:mth:ber888:v:8:y:2018:i:2:p:33-55
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    References listed on IDEAS

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    1. Cardos Ildiko Reka & Pete Stefan & Cardos Vasile Daniel, 2014. "Traditional Budgeting Versus Beyond Budgeting: A Literature Review," Annals of Faculty of Economics, University of Oradea, Faculty of Economics, vol. 1(1), pages 573-581, July.
    2. Marginson, David & Ogden, Stuart, 2005. "Coping with ambiguity through the budget: the positive effects of budgetary targets on managers' budgeting behaviours," Accounting, Organizations and Society, Elsevier, vol. 30(5), pages 435-456, July.
    3. Risseeuw, Peter & Masurel, Enno, 1994. "The Role of Planning in Small Firms: Empirical Evidence from a Service Industry," Small Business Economics, Springer, vol. 6(4), pages 313-322, August.
    4. Sascha Kraus & Rainer Harms & Erich Schwarz, 2008. "Strategic business planning and success in small firms," International Journal of Entrepreneurship and Innovation Management, Inderscience Enterprises Ltd, vol. 8(4), pages 381-396.
    5. Ildikó Réka CARDOȘ, 2014. "New Trends In Budgeting – A Literature Review," SEA - Practical Application of Science, Romanian Foundation for Business Intelligence, Editorial Department, issue 4, pages 483-490, July.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Budgeting process; Advantages of budgets; Disadvantages of budgets; Technical aspects; Behavioral aspects; Macedonian companies;
    All these keywords.

    JEL classification:

    • R00 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General - - - General
    • Z0 - Other Special Topics - - General

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