155 International Journal of Academic Research in Accounting, Finance and Management Sciences Vol. 8, No.2, April 2018, pp. 155–163 E-ISSN: 2225-8329, P-ISSN: 2308-0337 © 2018 HRMARS www.hrmars.com To cite this article: Bhilawa, L., Kautsar, A. (2018). The Determinants of Relationship Between Budgetary Participation and Budgetary Slack, International Journal of Academic Research in Accounting, Finance and Management Sciences 8 (2): 155-163. http://dx.doi.org/10.6007/IJARAFMS/v8-i2/4240 (DOI: 10.6007/IJARAFMS/v8-i2/4240) The Determinants of Relationship Between Budgetary Participation and Budgetary Slack Loggar BHILAWA 1 , Achmad KAUTSAR 2 1 Departement of Accounting, Faculty of Economics, Universitas Negeri Surabaya, Indonesia, 1 E-mail: loggarbhilawa@unesa.ac.id 2 Departement of Management, Faculty of Economics, Universitas Negeri Surabaya, Indonesia, 2 E-mail: achmadkautsar@unesa.ac.id Abstract The objective of this study is to test the influence of budgetary participation on budgetary slack, as well as to test whether or not information asymmetry, job relevant information, goal orientation, organizational commitment, and innovation perception are the moderation variables that affect the relation between budgetary participation and budgetary slack. Sample in this research is the managers in all Faculty of “X” State University in Indonesia who comprised of the head of department and the head of study program in total number 87 manager. Analysis is done through descriptive, instruments of validity and reliability tests, classical assumption test, and interaction regression analysis. Research findings showed that budgetary participation negatively affected budgetary slack. Higher participation level in the budgetary process will decrease the tendency of budgetary slack from happening. Information asymmetry, goal orientation, and innovative perception moderate the relation between budgetary participation and budgetary slack. Job relevant information and organizational commitment do not have any influence on the relation between budgetary participation and budgetary slack. This article gives contribution to the inconsistencies in many previous studies about the relation between budgetary participation and budgetary slack by adding other variables that are suitable with the organizational characteristics of public sector related to work behavior and work culture especially in state university and in emerging country scenario. Key words Budgetary participation, budgetary slack, information Asymetri, job relevant information Received: 18 May 2018 © The Authors 2018 Revised: 06 Jun 2018 Published by Human Resource Management Academic Research Society (www.hrmars.com) This article is published under the Creative Commons Attribution (CC BY 4.0) license. Anyone may reproduce, distribute, translate and create derivative works of this article (for both commercial and non- commercial purposes), subject to full attribution to the original publication and authors. The full terms of this license may be seen at: http://creativecommons.org/licences/by/4.0/legalcode Accepted: 20 Jun 2018 Published Online: 30 Jun 2018 1. Introduction The commitment of the Government of Indonesia toward Indonesian education is embodied by giving 20% budget of total State Income and Expenditure Budget (APBN) in number of IDR 207 billions (or 10.350 millionsPound sterling) from the total of Indonesian APBN of IDR 1,037 billions in 2009 (Santoso, 2014). Education has become the priority for public service provided by the government. Given with such huge amount of budget thus a very careful planning necessarily be taken so the budget can be right on target and can be enjoyed by all Indonesian children. This budget has to be used to administer education, to improve educational facilities and infrastructures, and to grant scholarships to top achievers and poor students. In order to operate the organizational activities in a more effective and efficient ways thus a planning and controlling tools are required, namely a budget which constitutes the element of management control system (Schiff and Lewin,