An International Meeting of the American Accounting Association American Accounting Association 2006 Annual Meeting August 6–9, 2006 Washington, D.C.

Sakthi Mahenthiran
Butler University

Ben Liu
Butler University

Zalina Hashim
University Institute of Technology Mara

Abstract: This is an empirical study of the relations between culture, budget emphasis, subordinates’ autonomy, the level of trust between supervisor-subordinates and how they affect sales growth in outlets. Survey data from 148 respondents were collected from a telecommunication and electric utility companies. These two industries have been deregulated and the companies had been privatized. Given these variables importance to the success of privatization, we develop five hypotheses and a framework. These are tested using regression analysis and structural equation modeling. We find that organizational culture affects subordinates perceptions of autonomy and the budgetary style affects the superiors trust in subordinates’. The results suggest that adjustment to structural and performance evaluation systems have to be made so that managers’ value greater autonomy, and superiors have to manage the importance of the outlets.

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