Beyond The Numbers: How Do Gender and Proactivity Influence Budgetary Slack in Indonesian Higher Education? Stewardship Theory Perspective

Abstract

Budget plays a crucial role in managing and allocating financial resources within the organizational framework. Budgetary slack is a complex phenomenon shaped by various factors. It doesn't always lead to dysfunctional behavior; rather, it can be functional and create value by managing risk. Proper management is essential to maximize its benefits and minimize potential inefficiencies. Most research examining budgetary slack is based on agency theory. Although there is a lot of research on personality which is related to ethical decisions, research linking personality with budgetary slack is still rare. This study fills the gap by highlighting budgetary slack among universities in Indonesia. Based on stewardship theory, the present study examines the relationship between proactivity, gender and budgetary slack within the specific context of higher education institutions in Indonesia. This study uses age as a control variable. The researchers utilizes online survey techniques for data acquisition, and the data is then analysed using the Partial Least Squares - Structural Equation Modeling (PLS-SEM) approach. The results of this study show that proactivity and gender are related to budgetary slack. Additionally, age as a control variable shows a significant relationship with budgetary slack