Cognitive Effects Mediating Vertical Information Sharing on the Relationship between Budget Participation, Managerial Attitudes and Performance

Abstract

This study analyzes the cognitive mediating effects of vertical information sharing in the relationship between budget participation, managerial attitudes and performance. This descriptive research was carried out by means of a survey, with 267 professionals in the controlling area of companies operating in Brazil, and a quantitative data approach (MEE). The results show that budget participation positively influences information sharing, and this variable has a positive influence on work involvement, managerial attitudes, and managerial performance. Managerial performance is also associated with job involvement and managerial attitudes toward budgeting. The effects of job involvement on managerial attitudes toward budgeting were not confirmed. Mediating effects of vertical information sharing were found in the relationship between budget participation, managerial attitudes, and performance. These results reveal that under conditions of higher level of information sharing, the controllers participating in the study exhibit greater influence and involvement in budget processes, greater commitment, work involvement, and proactive managerial attitudes toward budgeting, which reflects positively on managerial performance in budgeting activities. These findings contribute to the literature by adding new evidence of the cognitive mediating effects of vertical information sharing on the relationship between budget participation, managerial attitudes toward budgeting, and managerial performance.