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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.

History

Document type

  • PhD dissertation

Degree awarded

PhD in Business (General Management)

Year degree awarded

2017

Supervisor(s)

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

67

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