The Impact of Budgeting Process on the Performance of Sme's in China

THE IMPACT OF THE BUDGETING
PROCESS ON PERFORMANCE IN
SMALL AND MEDIUM-SIZED
FIRMS IN CHINA
Yang Qi

THE IMPACT OF THE BUDGETING PROCESS ON
PERFORMANCE IN SMALL AND MEDIUM-SIZED FIRMS
IN CHINA
杨齐
Yang Qi
Graduation Committee:
Prof. dr. P. J. J. M. van Loon (chairman) University of Twente
Prof. dr. P. B. Boorsma (promotor) University of Twente
Dr. P. A. T. M. Geurts (assistant promotor) University of Twente
Prof. dr. N. P. Mol University of Twente
Prof. dr. M. R. Kabir University of Twente
Prof. dr. A. J. Groen University of Twente
Prof. dr. ir E. J. de Bruijn University of Twente
Prof. dr. G. J. van Helden University of Groningen
Printed by: Print Partners Ipskamp, Enschede
ISBN: 978-90-365-2983-9
DOI: 10.3990/1.9789036529839
Copyright © 2010 by Yang Qi
All rights reserved. No part of this publication may be reproduced, stored in a database or retrieval system, or published in any form or any way, electronically, mechanically, by print, photoprint, microfilm or any other means without prior written permission from the author and publisher.
THE IMPACT OF THE BUDGETING PROCESS ON
PERFORMANCE IN SMALL AND MEDIUM-SIZED FIRMS
IN CHINA
DISSERTATION
to obtain the degree of doctor at the University of Twente, on the authority of the rector magnificus, prof. dr. H. Brinksma, on account of the decision of the graduation committee, to be publicly defended on Thursday the 18th of February 2010, at 15:00 hrs by 杨齐
Yang Qi born on the 29th ofMay, 1980 in Yue Yang, China
This dissertation is approved by:
Prof. dr. P. B. Boorsma (promotor)
Dr. P. A. T. M. Geurts (assistant promotor)
To my parents Yang Shi Tai and Ding Hong
献给我的父母：杨石太和丁红

I
Acknowledgements
I want to show gratitude to many people.
First of all, my warmest appreciations go to my “promotor” Prof. Dr. Peter B. Boorsma and my “assistant promotor” Dr. Peter A.T.M. Geurts. They spent a lot of their time on supervising me during the last years. Their academic

References: adapt to changing market conditions such as new competition, price changes, personnel availability, and so on (Mclaughlin, 1992) 1 Steiner, 1969; Kastens, 1976; Kono, 1990 CHAPTER 1: INTRODUCTION by decision makers (Wooldridge et. al, 2001). It has been used in the short-term (twoto- one year) for the operational planning in standard costing Strategic planning is an irregular activity that takes place in the higher echelons of an organization (Anthony, 1965) budgeting (Otley & Pollanen, 2000). and summarize business operation (Meigs, 1996). The role of keeping the financial information and on-going analysis necessary to provide management and outside interests with the facts necessary for decision, is also considered (Grigg, 1988). Relying on certain standards and GAAP (General Accepted Accounting Principles), the and financial position in monetary terms. (Horngren, 2002) It focuses on a forthcoming accounting period, rather than on the past period on which the accounting is based to