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Can honesty reminders reduce budgetary slack?

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posted on 2020-05-14, 09:52 authored by Katherine Chi Kwan YUEN

This study investigates the effect of honesty reminders on budgetary slack. Based on the self-concept maintenance theory of Mazar, Amir, and Ariely (2008), I posit that honesty reminders can reduce budgetary slack by making people more aware of their own standards of honesty and lowering their dishonesty thresholds, resulting in more honest behavior. I find strong evidence that honesty reminders reduce budgetary slack and are marginally more effective than penalties in reducing budgetary slack. Finally, I find that honesty reminders have a stronger effect on slack reduction than penalties when the payoff for slack creation is higher.


Document type

PhD dissertation

Degree awarded

PhD in Business (General Management)

Year degree awarded



LIM, Chee Yeow

Committee members

PAN, Shan Chi; ZERRILLO, Philip Charles; SEOW, Poh Sun

SMU School

Lee Kong Chian School of Business

No. of pages