Title: Actual participation: the effects of information sharing and familiarity team on budget decision quality

Authors: Apriwandi; R.A. Supriyono

Addresses: Economics Faculty, Accounting Department, Widyatama University, 40125, Indonesia ' Accounting Department, Gajah Mada University, Indonesia

Abstract: This experiment examines the effect of information sharing and team member familiarity on decision quality. Forty students participated in the experiment playing the role of budget managers and teams. The task of the experiment is to translate symbol codes and propose the amount of code to be translated in an online meeting as a measure of actual information sharing and participation. Participants were randomly assigned to each condition (high/low sharing of information and familiarity). The results showed that information sharing and decision quality were better under conditions of information sharing and high familiarity than information sharing and low familiarity. The results are consistent with increased familiarity of team members under information sharing among team members which increases polarisation in budget decision making. The results also suggest that differences in the quality of team decisions may be better explained by psychological factors and cognitive behaviour than by agency contracts.

Keywords: budget decisions; team familiarity; information sharing.

DOI: 10.1504/IJMEF.2021.114025

International Journal of Monetary Economics and Finance, 2021 Vol.14 No.2, pp.188 - 195

Received: 06 Aug 2019
Accepted: 12 Feb 2020
Published online: 06 Apr 2021 *

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