Les Cahiers de Recherche - HEC Paris
Sebastian D Becker
Budgeting in Times of Economic Crisis
(), Matthias D Mahlendorf, Utz Schäffer and Mario Thaten
Abstract: This paper examines how corporate reliance on budgets is
affected by major changes in the economic environment. We combine survey
and archival data from the economic crisis that began in 2008. The results
indicate that, as a result of the economic crisis, budgeting became more
important for planning and resource allocation but less important for
performance evaluation. Additional evidence from interviews and data
gathered in a focus group further illustrate these results and show the
changes organizations have introduced to respond to the economic crisis.
Taken together, and contrary to more general conclusions from the
literature such as an overall increase or decrease in the importance of
budgeting, we find that companies emphasize certain budgeting functions
over others during economic crises.
Keywords: Budgeting; budgeting functions; economic crisis; crisis management; (follow links to similar papers)
JEL-Codes: M40; M41; (follow links to similar papers)
36 pages, May 12, 2015
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