Foreign investment in China typically occurs through partnerships with state owned enterprises. An understanding of management control similarities and differences between these entities is crucial to joint venture success in China. This paper compares budgetary controls between Chinese state and foreign owned enterprises. Signiﬁcant multivariate budgetary control differences were found. Interestingly, several of the hypothesized univariate differences were not conﬁrmed. These included cen-tralization, hierarchy, budget participation, controllability ﬁlters and incentives. State enterprises differed however with respect to several other budgetary practices, including divisional interdependence, standard difﬁculty, environmental uncertainty, standard operating procedures and relative performance evaluation.
|Number of pages||18|
|Journal||Advances in Management Accounting|
|Publication status||Published - 1999|