This study investigates the intervening effects of job-related stress on performance and slack in participative budget settings. According to the results of the existing em-pirical studies, the relationship between budgetary participation and both managerial performance and budgetary slack have been equivocal. The prior studies indicated that the relationships may not be simple direct ones. In order to reconcile the contradictions in the past literature, this study proposes that job-related stress is endogenous to budg-etary participation.
As to the testing method, the result is based on a questionnaire survey of managers of publicly owned corporations which trade on the Taiwan Stock Exchange (TSE) and the GreTai Securities Market (GTSM). The conclusions of this study suggest that budg-etary participation has an indirect effect through job-related stress on performance and slack. Managerial performance encourages while job-related stress relieves. To put it another way, budgetary slack lowers as job-related stress eases. Furthermore, the inter-vening effects of job-related stress on the relationship between budgetary participation and job outcomes in service industry are obvious than other industries.

CHAPTER 1 INTRODUCTION 6
1.1 Motivation and Background 6
1.2 Objective 8
CHAPTER 2 LITERATURE REVIEW 13
2.1 Budgetary Participation and Managerial Performance 13
2.2 Budgetary Participation and Job-Related Stress 20
2.3 Job-Related Stress as an Intervening Variable Between Budgetary Participation and Managerial Performance 21
2.4 Budgetary Participation and Budgetary Slack 22
2.5 Job-Related Stress as an Intervening Variable Between Budgetary Participation and Budgetary Slack 26
2.6 Summary of Hypotheses 27
CHAPTER 3 RESEARCH DESIGN 30
3.1 Sample 30
3.2 Measurement Instruments 30
3.2.1 Budgetary Participation 30
3.2.2 Job-Related Stress 31
3.2.3 Managerial Performance 32
3.2.4 Budgetary Slack 35
3.3 Path Analysis 37
CHAPTER 4 RESEARCH RESULTS 40
4.1 Descriptive Statistics 40
4.2 Factor Analysis 41
4.3 Empirical Results 43
4.3.1 The Intervening Effect of Job-Related Stress on the Relationship Between Budgetary Participation and Managerial Performance 43
4.3.2 The Intervening Effect of Job-Related Stress on the Relationship Between Budgetary Participation and Budgetary Slack 46
4.4 The Intervening Effects of Job-Related Stress in Manufacturing and Service Industries 48
4.4.1 Sub-Samples and Descriptive Statistics 49
4.4.2 The Intervening Effects of Job-Related Stress in Manufacturing Industry 51
4.4.3 The Intervening Effects of Job-Related Stress in Service Industry 55
4.5 The Intervening Effects of Job-Related Stress in Electronic and Non-Electronic Industries 59
4.5.1 Sub-Samples and Descriptive Statistics 59
4.5.2 The Intervening Effects of Job-Related Stress in Electronic Industry 62
4.5.3 The Intervening Effects of Job-Related Stress in Non-Electronic Industry 65
4.6 Summary 68
CHAPTER 5 CONCLUSIONS AND SUGGESTING 74
5.1 Conclusions 74
5.2 Practical Implications 75
5.3 Research Limitations 75
5.4 Suggestion of Further Research 76
Reference 77
Appendix: Questionnaire Items 84

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