Description: Referent cog&ions theory predicts that employees who receive unfavorable budgets will have less
negative attitudes toward budgetary decision makers if they participated in the budgetary process than
if they did not participate. Questionnaire data from international managers were analyzed with regression
to test for this predicted interaction between budgetary participation and budgetary outcome favorability.
The results indicated that budgetary participation and budget favorability had the predicted
interactive effect on the managers’ attitudes toward their supervisor and their organization.