Structure of Planning and Control Artifacts and their Accuracy in Brazilian Family Businesses

Frezatti, Fábio; Mucci, Daniel Magalhães; Bido, Diógenes de Souza

doi:10.1590/1807-7692bar2022210080

Fábio Frezatti

Universidade de São Paulo, São Paulo, SP, Brazil

https://orcid.org/0000-0002-5927-022X

Daniel Magalhães Mucci

Universidade de São Paulo, São Paulo, SP, Brazil

https://orcid.org/0000-0002-0658-1470

Diógenes de Souza Bido

Universidade Presbiteriana Mackenzie, São Paulo, SP, Brazil

https://orcid.org/0000-0002-8525-5218

* Corresponding author

Editor-in-chief:

Ivan Lapuente Garrido (Universidade do Vale do Rio dos Sinos, Brazil).

Associate Editor:

Carlos Eduardo Lavarda (Universidade Federal de Santa Catarina, Brazil).

Reviewers:

Ilse Maria Beuren (Universidade Federal de Santa Catarina, Florianópolis, SC, Brazil) and one anonymous reviewer.

Editorial assistants:

Kler Godoy and Simone Rafael (ANPAD, Maringá, Brazil).

Authors’ contributions

1^st author: conceptualization (lead), data curation (lead), formal analysis (equal), funding acquisition (equal), investigation (equal), methodology (equal), project administration (lead), resources (equal), software (equal), supervision (lead), validation (equal), visualization (equal), writing - original draft (lead), writing - review & editing (lead).

2^nd author: conceptualization (equal), data curation (equal), formal analysis (equal), funding acquisition (supporting), investigation (equal), methodology (equal), project administration (supporting), resources (supporting), software (supporting), supervision (supporting), validation (equal), visualization (equal), writing - original draft (equal), writing - review & editing (equal).

3^rd author: conceptualization (supporting), data curation (supporting), formal analysis (lead), funding acquisition (supporting), investigation (supporting), methodology (equal), project administration (supporting), resources (supporting), software (equal), supervision (equal), validation (equal), visualization (equal), writing - original draft (equal), writing - review & editing (equal).

Authors

Fabio Frezatti*

Universidade de São Paulo

Av. Prof. Luciano Gualberto, n. 908, Cidade Universitária, 05508010, São Paulo, SP, Brazil

frezatti@usp.br

https://orcid.org/0000-0002-5927-022X

Daniel Magalhães Mucci

Universidade de São Paulo

Av. Prof. Luciano Gualberto, n. 908, Cidade Universitária, 05508010, São Paulo, SP, Brazil

danielmmucci@usp.br

https://orcid.org/0000-0002-0658-1470

Diógenes de Souza Bido

Universidade Presbiteriana Mackenzie

Av. Consolação, 930, 01302-907, Sao Paulo, SP, Brazil

dsbido@gmail.com

http://orcid.org/0000-0002-8525-5218

	N	%			N	%
Panel A. Number of employees			Panel C. Shareholder control
Up to 49	10	20.83%		Under 50% family control	10	20.83%
From 50 to 249	9	18.75%		Between 50 and 100% family control	6	12.50%
From 250 to 999	16	33.33%		100% family control	32	66.67%
Equal to or above 1000	13	27.09%
Panel B. Annual turnover in millions (2017 baseline)			Panel D. Hierarchical level of the respondent
Up to 50	18	37.50%		Level 1	43	89.58%
Between 51 and 100	5	10.42%		Level 2	4	8.33%
Between 101 and 300	9	18.75%		Level 3 and below	1	2.08%
Between 301 and 500	3	6.25%
Between 501 and 1000	6	12.50%
Above 1000	7	14.58%

Measured in percentage or percentage points	Tolerance/acceptable deviation				Actual occurred deviation
Measured in percentage or percentage points	≤5	5 < X ≤ 10	10 < X ≤ 20	>20	≤5	5 < X ≤ 10	10 < X ≤ 20	>20
Accuracy of the market assumptions
Inflation	79.17%	16.67%	4.17%	0.00%	70.83%	25.00%	4.17%	0.00%
Exchange rate variation	52.08%	37.50%	10.42%	0.00%	47.92%	37.50%	12.50%	2.08%
Supplier price variation	68.75%	29.17%	2.08%	0.00%	54.17%	37.50%	6.25%	2.08%
Wage variation	81.25%	18.75%	0.00%	0.00%	79.17%	20.83%	0.00%	0.00%
Accuracy of performance metrics
Revenues	41.67%	39.58%	16.67%	2.08%	45.83%	29.17%	22.92%	2.08%
Gross margin	52.08%	31.25%	14.58%	2.08%	47.92%	33.33%	16.67%	2.08%
Net earnings	45.83%	41.67%	8.33%	4.17%	43.75%	37.50%	14.58%	4.17%
Return on equity	56.25%	35.42%	6.25%	2.08%	45.83%	41.67%	8.33%	4.17%

	1	2	3	4	5	6	7	8
1. Strategic planning	0.898
2. CAPEX	0.643	0.821
3. Budget	0.658	0.753	0.852
4. Budgetary control	0.573	0.588	0.619	0.862
5. Base forecast	0.516	0.55	0.518	0.737	0.894
6. Rolling forecast	0.553	0.527	0.482	0.316	0.517	0.918
7. Market assumptions accuracy	0.095	0.055	0.022	0.077	-0.064	-0.092	0.665
8. Performance accuracy	0.009	-0.059	-0.089	-0.113	-0.041	0.065	0.285	0.816
Average variance extracted (AVE)	0.807	0.673	0.727	0.742	0.799	0.843	0.442	0.666
Composite reliability	0.926	0.892	0.914	0.896	0.923	0.941	0.741	0.889
Mean	3.90	3.65	3.99	4.18	4.08	3.40	-	-
Standard deviation	1.19	1.29	1.16	1.12	1.07	1.27	-	-

	Relative importance		Absolute importance		VIF
	Factor weight	p-value	Factor loading	p-value
Strategic planning -> Planning mechanisms	0.322	0.000	0.843	0.000	1.935
CAPEX -> Planning mechanisms	0.378	0.000	0.903	0.000	2.533
Budget -> Planning mechanisms	0.421	0.000	0.918	0.000	2.623

Structural relationships	Hypoth.	f²	β	p-value	Adjust. R²
Market assumptions accuracy -> Performance accuracy	H1(+)	0.114	0.322	0.011	0.124
Budgetary control -> Performance accuracy	H4(+)	0.031	-0.250	0.398
Base forecast -> Performance accuracy	H6(+)	0.004	0.100	0.753
Rolling forecast -> Performance accuracy	H9(+)	0.012	0.122	0.490
Budgetary control -> Rolling forecast	H7(+)	0.013	-0.142	0.444	0.277
Base forecast -> Rolling forecast	H8(+)	0.244	0.622	0.000	0.277
Budgetary control -> Base forecast	H5(+)	1.190	0.737	0.000	0.543
Planning mechanisms -> Budgetary control	H2(+)	0.811	0.668	0.000	0.451
Market assumptions accuracy -> Budgetary control	H3(+)	0.002	0.037	0.838	0.451

Y = Performance accuracy	Market assumptions accuracy	SP	CAPEX	Budget	Budgetary control	Base forecast	Rolling forecast
5	NN	NN	NN	NN	NN	NN	NN
10	NN	NN	NN	NN	NN	NN	NN
15	NN	NN	NN	NN	NN	NN	NN
20	NN	NN	NN	NN	NN	NN	NN
25	NN	NN	NN	NN	NN	NN	NN
30	NN	NN	NN	NN	NN	NN	NN
35	NN	NN	NN	NN	NN	8,5	NN
40	NN	NN	NN	NN	NN	8,5	NN
45	NN	NN	NN	NN	NN	8,5	NN
50	NN	NN	NN	NN	NN	8,5	NN
55	NN	NN	NN	NN	NN	8,5	NN
60	NN	NN	NN	NN	NN	8,5	NN
65	NN	19.5	NN	35.5	59.7	57.9	NN
70	NN	87.5	55.8	77.0	59.7	57.9	NN
75	NN	87.5	55.8	77.0	59.7	57.9	NN
80	NN	87.5	55.8	77.0	59.7	57.9	NN
85	NN	87.5	55.8	77.0	59.7	57.9	NN
90	100	87.5	55.8	79.3	59.7	57.9	NN
95	100	87.5	55.8	79.3	59.7	57.9	NN
100	100	87.5	55.8	79.3	59.7	57.9	NN

Construct	Variables	Statement	Elaborated based on:
Strategic planning	SP_1	1. Identity items (mission, vision, beliefs, and values) Explores elements of identity such as mission, values, beliefs, and values	(Ferreira & Otley, 2009Ferreira, A., & Otley, D. (2009). The design and use of performance management systems: an extended framework for analysis. Management Accounting Research, 20(4), 263-282. https://doi.org/10.1016/j.mar.2009.07.003 https://doi.org/10.1016/j.mar.2009.07.00... ; Frezatti et al., 2011Frezatti, F., Aguiar, A. B., Guerreiro, R., & Gouvea, M. A. (2011). Does management accounting play role in planning process? Journal of Business Research, 64(3), 242-249. https://doi.org/10.1016/j.jbusres.2009.11.008 https://doi.org/10.1016/j.jbusres.2009.1... ; Merchant & Van der Stede, 2007Merchant, K. A., & Van Der Stede, W. A. (2007). Management control systems: Performance measurement, evaluation and incentives. New York, NY: Pearson.)
	SP_2	2. Strategies approved and formalized for the business Approves and formalizes strategies for the business	(Ferreira & Otley, 2009Ferreira, A., & Otley, D. (2009). The design and use of performance management systems: an extended framework for analysis. Management Accounting Research, 20(4), 263-282. https://doi.org/10.1016/j.mar.2009.07.003 https://doi.org/10.1016/j.mar.2009.07.00... ; Frezatti et al., 2011Frezatti, F., Aguiar, A. B., Guerreiro, R., & Gouvea, M. A. (2011). Does management accounting play role in planning process? Journal of Business Research, 64(3), 242-249. https://doi.org/10.1016/j.jbusres.2009.11.008 https://doi.org/10.1016/j.jbusres.2009.1... ; Merchant & Van der Stede, 2007Merchant, K. A., & Van Der Stede, W. A. (2007). Management control systems: Performance measurement, evaluation and incentives. New York, NY: Pearson.)
	SP_3	3. Operational plans for implementing the strategies Develops operational plans to implement the strategies	(Ferreira & Otley, 2009Ferreira, A., & Otley, D. (2009). The design and use of performance management systems: an extended framework for analysis. Management Accounting Research, 20(4), 263-282. https://doi.org/10.1016/j.mar.2009.07.003 https://doi.org/10.1016/j.mar.2009.07.00... ; Frezatti et al., 2011Frezatti, F., Aguiar, A. B., Guerreiro, R., & Gouvea, M. A. (2011). Does management accounting play role in planning process? Journal of Business Research, 64(3), 242-249. https://doi.org/10.1016/j.jbusres.2009.11.008 https://doi.org/10.1016/j.jbusres.2009.1... ; Merchant & Van der Stede, 2007Merchant, K. A., & Van Der Stede, W. A. (2007). Management control systems: Performance measurement, evaluation and incentives. New York, NY: Pearson.)
	SP_4	4. Long-term financial statements (income statement, balance sheet, and cash flow statement) Considers/evaluates the long-term financial statements in the development of the strategic plan	(Ferreira & Otley, 2009Ferreira, A., & Otley, D. (2009). The design and use of performance management systems: an extended framework for analysis. Management Accounting Research, 20(4), 263-282. https://doi.org/10.1016/j.mar.2009.07.003 https://doi.org/10.1016/j.mar.2009.07.00... ; Frezatti et al., 2011Frezatti, F., Aguiar, A. B., Guerreiro, R., & Gouvea, M. A. (2011). Does management accounting play role in planning process? Journal of Business Research, 64(3), 242-249. https://doi.org/10.1016/j.jbusres.2009.11.008 https://doi.org/10.1016/j.jbusres.2009.1... ; Merchant & Van der Stede, 2007Merchant, K. A., & Van Der Stede, W. A. (2007). Management control systems: Performance measurement, evaluation and incentives. New York, NY: Pearson.)
	SP_5	5. The strategic planning exists and is revised Regularly revises the strategic planning	(Ferreira & Otley, 2009Ferreira, A., & Otley, D. (2009). The design and use of performance management systems: an extended framework for analysis. Management Accounting Research, 20(4), 263-282. https://doi.org/10.1016/j.mar.2009.07.003 https://doi.org/10.1016/j.mar.2009.07.00... ; Frezatti et al., 2011Frezatti, F., Aguiar, A. B., Guerreiro, R., & Gouvea, M. A. (2011). Does management accounting play role in planning process? Journal of Business Research, 64(3), 242-249. https://doi.org/10.1016/j.jbusres.2009.11.008 https://doi.org/10.1016/j.jbusres.2009.1... ; Merchant & Van der Stede, 2007Merchant, K. A., & Van Der Stede, W. A. (2007). Management control systems: Performance measurement, evaluation and incentives. New York, NY: Pearson.)
Budget	Bud_1	1. Assumptions for the elaboration of the budget (inflation, interest, wage and input variations) Considers assumptions such as inflation, interest, wage and input variations	(Frezatti et al., 2011Frezatti, F., Aguiar, A. B., Guerreiro, R., & Gouvea, M. A. (2011). Does management accounting play role in planning process? Journal of Business Research, 64(3), 242-249. https://doi.org/10.1016/j.jbusres.2009.11.008 https://doi.org/10.1016/j.jbusres.2009.1... ; Frow et al., 2010Frow, N., Marginson, D., & Ogden, S. (2010). Continuous’ budgeting: Reconciling budget flexibility with budgetary control. Accounting, Organizations and Society, 35(4), 444-461. https://doi.org/10.1016/j.aos.2009.10.003 https://doi.org/10.1016/j.aos.2009.10.00... ; Haka & Krishnan, 2005Haka, S., & Krishnan, R. (2005). Budget type and performancethe moderating effect of uncertainty. Australian Accounting Review, 15(35), 3-13. https://doi.org/10.1111/j.1835-2561.2005.tb00247.x https://doi.org/10.1111/j.1835-2561.2005... ; Hansen & Van der Stede, 2004Hansen, S. C., & Van der Stede, W. A. (2004). Multiple facets of budgeting: An exploratory analysis. Management Accounting Research, 15(4), 415-439. https://doi.org/10.1016/j.mar.2004.08.001 https://doi.org/10.1016/j.mar.2004.08.00... ; Henttu-Aho, 2018Henttu-Aho, T. (2018). The role of rolling forecasting in budgetary control systems: Reactive and proactive types of planning. Journal of Management Control, 29(3), 327-360. https://doi.org/10.1007/s00187-018-00273-6 https://doi.org/10.1007/s00187-018-00273... )
	Bud_2	2. Components of the operational plans The operational plans contain MKT, operations, HR, and investments.	(Frezatti et al., 2011Frezatti, F., Aguiar, A. B., Guerreiro, R., & Gouvea, M. A. (2011). Does management accounting play role in planning process? Journal of Business Research, 64(3), 242-249. https://doi.org/10.1016/j.jbusres.2009.11.008 https://doi.org/10.1016/j.jbusres.2009.1... ; Frow et al., 2010Frow, N., Marginson, D., & Ogden, S. (2010). Continuous’ budgeting: Reconciling budget flexibility with budgetary control. Accounting, Organizations and Society, 35(4), 444-461. https://doi.org/10.1016/j.aos.2009.10.003 https://doi.org/10.1016/j.aos.2009.10.00... ; Haka & Krishnan, 2005Haka, S., & Krishnan, R. (2005). Budget type and performancethe moderating effect of uncertainty. Australian Accounting Review, 15(35), 3-13. https://doi.org/10.1111/j.1835-2561.2005.tb00247.x https://doi.org/10.1111/j.1835-2561.2005... ; Hansen & Van der Stede, 2004Hansen, S. C., & Van der Stede, W. A. (2004). Multiple facets of budgeting: An exploratory analysis. Management Accounting Research, 15(4), 415-439. https://doi.org/10.1016/j.mar.2004.08.001 https://doi.org/10.1016/j.mar.2004.08.00... ; Henttu-Aho, 2018Henttu-Aho, T. (2018). The role of rolling forecasting in budgetary control systems: Reactive and proactive types of planning. Journal of Management Control, 29(3), 327-360. https://doi.org/10.1007/s00187-018-00273-6 https://doi.org/10.1007/s00187-018-00273... )
	Bud_3	3. Operational plans for implementing the strategies Develops operational plans to implement the strategies	(Frezatti et al., 2011Frezatti, F., Aguiar, A. B., Guerreiro, R., & Gouvea, M. A. (2011). Does management accounting play role in planning process? Journal of Business Research, 64(3), 242-249. https://doi.org/10.1016/j.jbusres.2009.11.008 https://doi.org/10.1016/j.jbusres.2009.1... ; Frow et al., 2010Frow, N., Marginson, D., & Ogden, S. (2010). Continuous’ budgeting: Reconciling budget flexibility with budgetary control. Accounting, Organizations and Society, 35(4), 444-461. https://doi.org/10.1016/j.aos.2009.10.003 https://doi.org/10.1016/j.aos.2009.10.00... ; Hansen & Van der Stede, 2004Hansen, S. C., & Van der Stede, W. A. (2004). Multiple facets of budgeting: An exploratory analysis. Management Accounting Research, 15(4), 415-439. https://doi.org/10.1016/j.mar.2004.08.001 https://doi.org/10.1016/j.mar.2004.08.00... ; Henttu-Aho, 2018Henttu-Aho, T. (2018). The role of rolling forecasting in budgetary control systems: Reactive and proactive types of planning. Journal of Management Control, 29(3), 327-360. https://doi.org/10.1007/s00187-018-00273-6 https://doi.org/10.1007/s00187-018-00273... )
	Bud_4	4. Financial plan Estimation of the statements: income statement, balance sheet, cash flow statement	(Frezatti et al., 2011Frezatti, F., Aguiar, A. B., Guerreiro, R., & Gouvea, M. A. (2011). Does management accounting play role in planning process? Journal of Business Research, 64(3), 242-249. https://doi.org/10.1016/j.jbusres.2009.11.008 https://doi.org/10.1016/j.jbusres.2009.1... ; Frow et al., 2010Frow, N., Marginson, D., & Ogden, S. (2010). Continuous’ budgeting: Reconciling budget flexibility with budgetary control. Accounting, Organizations and Society, 35(4), 444-461. https://doi.org/10.1016/j.aos.2009.10.003 https://doi.org/10.1016/j.aos.2009.10.00... ; Haka & Krishnan, 2005Haka, S., & Krishnan, R. (2005). Budget type and performancethe moderating effect of uncertainty. Australian Accounting Review, 15(35), 3-13. https://doi.org/10.1111/j.1835-2561.2005.tb00247.x https://doi.org/10.1111/j.1835-2561.2005... ; Hansen & Van der Stede, 2004Hansen, S. C., & Van der Stede, W. A. (2004). Multiple facets of budgeting: An exploratory analysis. Management Accounting Research, 15(4), 415-439. https://doi.org/10.1016/j.mar.2004.08.001 https://doi.org/10.1016/j.mar.2004.08.00... ; Henttu-Aho, 2018Henttu-Aho, T. (2018). The role of rolling forecasting in budgetary control systems: Reactive and proactive types of planning. Journal of Management Control, 29(3), 327-360. https://doi.org/10.1007/s00187-018-00273-6 https://doi.org/10.1007/s00187-018-00273... )
	Bud_5	5. The budget is aligned with the strategic planning	(Frezatti et al., 2011Frezatti, F., Aguiar, A. B., Guerreiro, R., & Gouvea, M. A. (2011). Does management accounting play role in planning process? Journal of Business Research, 64(3), 242-249. https://doi.org/10.1016/j.jbusres.2009.11.008 https://doi.org/10.1016/j.jbusres.2009.1... ; Frow et al., 2010Frow, N., Marginson, D., & Ogden, S. (2010). Continuous’ budgeting: Reconciling budget flexibility with budgetary control. Accounting, Organizations and Society, 35(4), 444-461. https://doi.org/10.1016/j.aos.2009.10.003 https://doi.org/10.1016/j.aos.2009.10.00... ; Hansen & Van der Stede, 2004Hansen, S. C., & Van der Stede, W. A. (2004). Multiple facets of budgeting: An exploratory analysis. Management Accounting Research, 15(4), 415-439. https://doi.org/10.1016/j.mar.2004.08.001 https://doi.org/10.1016/j.mar.2004.08.00... ; Henttu-Aho, 2018Henttu-Aho, T. (2018). The role of rolling forecasting in budgetary control systems: Reactive and proactive types of planning. Journal of Management Control, 29(3), 327-360. https://doi.org/10.1007/s00187-018-00273-6 https://doi.org/10.1007/s00187-018-00273... )
Capital budget	CAPEX_1	1. Contains all the relevant long-term investment projects	(Frezatti, Aguiar, Guerreiro, & Gouvea, 2011Frezatti, F., Aguiar, A. B., Guerreiro, R., & Gouvea, M. A. (2011). Does management accounting play role in planning process? Journal of Business Research, 64(3), 242-249. https://doi.org/10.1016/j.jbusres.2009.11.008 https://doi.org/10.1016/j.jbusres.2009.1... )
	CAPEX_2	2. They cover periods longer than a year	(Frezatti, Aguiar, Guerreiro, & Gouvea, 2011Frezatti, F., Aguiar, A. B., Guerreiro, R., & Gouvea, M. A. (2011). Does management accounting play role in planning process? Journal of Business Research, 64(3), 242-249. https://doi.org/10.1016/j.jbusres.2009.11.008 https://doi.org/10.1016/j.jbusres.2009.1... )
	CAPEX_3	3. The major projects are supported by analyses such as net present value (NPV), payback, and internal rate of return (IRR)	(Frezatti, Aguiar, Guerreiro, & Gouvea, 2011Frezatti, F., Aguiar, A. B., Guerreiro, R., & Gouvea, M. A. (2011). Does management accounting play role in planning process? Journal of Business Research, 64(3), 242-249. https://doi.org/10.1016/j.jbusres.2009.11.008 https://doi.org/10.1016/j.jbusres.2009.1... )
	CAPEX_4	4. There is monitoring of the financial execution of the projects	(Frezatti, Aguiar, Guerreiro, & Gouvea, 2011Frezatti, F., Aguiar, A. B., Guerreiro, R., & Gouvea, M. A. (2011). Does management accounting play role in planning process? Journal of Business Research, 64(3), 242-249. https://doi.org/10.1016/j.jbusres.2009.11.008 https://doi.org/10.1016/j.jbusres.2009.1... )
Construct	Variables	Statement	Elaborated based on:
Base forecast - year	Forec_1	1. Re-estimates the income statement for the months still to occur in the year	(Berg & Karlsson, 2014Berg, A., & Karlsson, F. (2014). Why the annual budget is not dead: Contingencies affecting the relevance of the budget critique. Retrieved from: https://www.diva-portal.org/smash/get/diva2:727359/FULLTEXT01.pdf https://www.diva-portal.org/smash/get/di... ; Bhimani, Sivabalan, & Soonawalla, 2018Bhimani, A., Sivabalan, P., & Soonawalla, K. (2018). A study of the linkages between rolling budget forms, uncertainty and strategy. The British Accounting Review, 50(3), 306-323. https://doi.org/10.1016/j.bar.2017.11.002 https://doi.org/10.1016/j.bar.2017.11.00... ; Brüggen et al., 2021Brüggen, A., Grabner, I., & Sedatole, K. L. (2021). The folly of forecasting: The effects of a disaggregated demand forecasting system on forecast error, forecast positive bias, and inventory levels. The Accounting Review, 96(2), 127-152. https://doi.org/10.2308/tar-2018-0559 https://doi.org/10.2308/tar-2018-0559... ; Hansen, 2011Hansen, S. C. (2011). A theoretical analysis of the impact of adopting rolling budgets, activity-based budgeting and beyond budgeting. European Accounting Review, 20(2), 289-319. https://doi.org/10.1080/09638180.2010.496260 https://doi.org/10.1080/09638180.2010.49... ; Henttu-Aho, 2018Henttu-Aho, T. (2018). The role of rolling forecasting in budgetary control systems: Reactive and proactive types of planning. Journal of Management Control, 29(3), 327-360. https://doi.org/10.1007/s00187-018-00273-6 https://doi.org/10.1007/s00187-018-00273... ; Lukka & Granlund, 2003Lukka, K., & Granlund, M. (2003). Paradoxes of management and control in a new economy firm. Management Accounting in the Digital Economy (Chapter 13, pp. 239-259). Oxford, UK: Oxford University Press.; Merchant e Van der Stede, 2007Merchant, K. A., & Van Der Stede, W. A. (2007). Management control systems: Performance measurement, evaluation and incentives. New York, NY: Pearson.; Sivabalan et al., 2009)
	Forec_2	2. Re-estimates the economic-financial assumptions throughout the year	(Berg & Karlsson, 2014Berg, A., & Karlsson, F. (2014). Why the annual budget is not dead: Contingencies affecting the relevance of the budget critique. Retrieved from: https://www.diva-portal.org/smash/get/diva2:727359/FULLTEXT01.pdf https://www.diva-portal.org/smash/get/di... ; Bhimani, Sivabalan, & Soonawalla, 2018Bhimani, A., Sivabalan, P., & Soonawalla, K. (2018). A study of the linkages between rolling budget forms, uncertainty and strategy. The British Accounting Review, 50(3), 306-323. https://doi.org/10.1016/j.bar.2017.11.002 https://doi.org/10.1016/j.bar.2017.11.00... ; Brüggen et al., 2021Brüggen, A., Grabner, I., & Sedatole, K. L. (2021). The folly of forecasting: The effects of a disaggregated demand forecasting system on forecast error, forecast positive bias, and inventory levels. The Accounting Review, 96(2), 127-152. https://doi.org/10.2308/tar-2018-0559 https://doi.org/10.2308/tar-2018-0559... ; Hansen, 2011Hansen, S. C. (2011). A theoretical analysis of the impact of adopting rolling budgets, activity-based budgeting and beyond budgeting. European Accounting Review, 20(2), 289-319. https://doi.org/10.1080/09638180.2010.496260 https://doi.org/10.1080/09638180.2010.49... ; Henttu-Aho, 2018Henttu-Aho, T. (2018). The role of rolling forecasting in budgetary control systems: Reactive and proactive types of planning. Journal of Management Control, 29(3), 327-360. https://doi.org/10.1007/s00187-018-00273-6 https://doi.org/10.1007/s00187-018-00273... ; Lukka & Granlund, 2003Lukka, K., & Granlund, M. (2003). Paradoxes of management and control in a new economy firm. Management Accounting in the Digital Economy (Chapter 13, pp. 239-259). Oxford, UK: Oxford University Press.; Merchant e Van der Stede, 2007Merchant, K. A., & Van Der Stede, W. A. (2007). Management control systems: Performance measurement, evaluation and incentives. New York, NY: Pearson.; Sivabalan et al., 2009)
	Forec_3	3. Monitoring of the actual result compared with the base forecast	(Berg & Karlsson, 2014Berg, A., & Karlsson, F. (2014). Why the annual budget is not dead: Contingencies affecting the relevance of the budget critique. Retrieved from: https://www.diva-portal.org/smash/get/diva2:727359/FULLTEXT01.pdf https://www.diva-portal.org/smash/get/di... ; Bhimani, Sivabalan, & Soonawalla, 2018Bhimani, A., Sivabalan, P., & Soonawalla, K. (2018). A study of the linkages between rolling budget forms, uncertainty and strategy. The British Accounting Review, 50(3), 306-323. https://doi.org/10.1016/j.bar.2017.11.002 https://doi.org/10.1016/j.bar.2017.11.00... ; Brüggen et al., 2021Brüggen, A., Grabner, I., & Sedatole, K. L. (2021). The folly of forecasting: The effects of a disaggregated demand forecasting system on forecast error, forecast positive bias, and inventory levels. The Accounting Review, 96(2), 127-152. https://doi.org/10.2308/tar-2018-0559 https://doi.org/10.2308/tar-2018-0559... ; Hansen, 2011Hansen, S. C. (2011). A theoretical analysis of the impact of adopting rolling budgets, activity-based budgeting and beyond budgeting. European Accounting Review, 20(2), 289-319. https://doi.org/10.1080/09638180.2010.496260 https://doi.org/10.1080/09638180.2010.49... ; Henttu-Aho, 2018Henttu-Aho, T. (2018). The role of rolling forecasting in budgetary control systems: Reactive and proactive types of planning. Journal of Management Control, 29(3), 327-360. https://doi.org/10.1007/s00187-018-00273-6 https://doi.org/10.1007/s00187-018-00273... ; Lukka & Granlund, 2003Lukka, K., & Granlund, M. (2003). Paradoxes of management and control in a new economy firm. Management Accounting in the Digital Economy (Chapter 13, pp. 239-259). Oxford, UK: Oxford University Press.; Merchant e Van der Stede, 2007Merchant, K. A., & Van Der Stede, W. A. (2007). Management control systems: Performance measurement, evaluation and incentives. New York, NY: Pearson.; Sivabalan et al., 2009)
Rolling forecast	RolForec_1	1. Re-estimates the financial statements, adding the months already occurred within the new year so that it always has 12 or 24 months forecasted	(Bhimani et al., 2018Bhimani, A., Sivabalan, P., & Soonawalla, K. (2018). A study of the linkages between rolling budget forms, uncertainty and strategy. The British Accounting Review, 50(3), 306-323. https://doi.org/10.1016/j.bar.2017.11.002 https://doi.org/10.1016/j.bar.2017.11.00... ; Hansen, 2011Hansen, S. C. (2011). A theoretical analysis of the impact of adopting rolling budgets, activity-based budgeting and beyond budgeting. European Accounting Review, 20(2), 289-319. https://doi.org/10.1080/09638180.2010.496260 https://doi.org/10.1080/09638180.2010.49... ; Hansen & Stede, 2004; Jordan & Messner, 2020Jordan, S., & Messner, M. (2020). The use of forecast accuracy indicators to improve planning quality: Insights from a case study. European Accounting Review, 29(2), 337-359. https://doi.org/10.1080/09638180.2019.1577150 https://doi.org/10.1080/09638180.2019.15... ; Su, Baird, & Schoch, 2017Su, S., Baird, K., & Schoch, H. (2017). Management control systems: the role of interactive and diagnostic approaches to using controls from an organizational life cycle perspective. Journal of Accounting and Organizational Change, 13(1), 2-24. https://doi.org/10.1108/JAOC-03-2015-0032 https://doi.org/10.1108/JAOC-03-2015-003... )
	RolForec_2	2. The rolling forecast is considered at the time of establishing the forecast for the new year	(Bhimani et al., 2018Bhimani, A., Sivabalan, P., & Soonawalla, K. (2018). A study of the linkages between rolling budget forms, uncertainty and strategy. The British Accounting Review, 50(3), 306-323. https://doi.org/10.1016/j.bar.2017.11.002 https://doi.org/10.1016/j.bar.2017.11.00... ; Hansen, 2011Hansen, S. C. (2011). A theoretical analysis of the impact of adopting rolling budgets, activity-based budgeting and beyond budgeting. European Accounting Review, 20(2), 289-319. https://doi.org/10.1080/09638180.2010.496260 https://doi.org/10.1080/09638180.2010.49... ; Hansen & Stede, 2004; Jordan & Messner, 2020Jordan, S., & Messner, M. (2020). The use of forecast accuracy indicators to improve planning quality: Insights from a case study. European Accounting Review, 29(2), 337-359. https://doi.org/10.1080/09638180.2019.1577150 https://doi.org/10.1080/09638180.2019.15... ; Su, Baird, & Schoch, 2017Su, S., Baird, K., & Schoch, H. (2017). Management control systems: the role of interactive and diagnostic approaches to using controls from an organizational life cycle perspective. Journal of Accounting and Organizational Change, 13(1), 2-24. https://doi.org/10.1108/JAOC-03-2015-0032 https://doi.org/10.1108/JAOC-03-2015-003... )
	RolForec_3	3. Monitors the actual result and includes a comparison with the forecast	(Bhimani et al., 2018Bhimani, A., Sivabalan, P., & Soonawalla, K. (2018). A study of the linkages between rolling budget forms, uncertainty and strategy. The British Accounting Review, 50(3), 306-323. https://doi.org/10.1016/j.bar.2017.11.002 https://doi.org/10.1016/j.bar.2017.11.00... ; Hansen, 2011Hansen, S. C. (2011). A theoretical analysis of the impact of adopting rolling budgets, activity-based budgeting and beyond budgeting. European Accounting Review, 20(2), 289-319. https://doi.org/10.1080/09638180.2010.496260 https://doi.org/10.1080/09638180.2010.49... ; Hansen & Stede, 2004; Jordan & Messner, 2020Jordan, S., & Messner, M. (2020). The use of forecast accuracy indicators to improve planning quality: Insights from a case study. European Accounting Review, 29(2), 337-359. https://doi.org/10.1080/09638180.2019.1577150 https://doi.org/10.1080/09638180.2019.15... ; Su, Baird, & Schoch, 2017Su, S., Baird, K., & Schoch, H. (2017). Management control systems: the role of interactive and diagnostic approaches to using controls from an organizational life cycle perspective. Journal of Accounting and Organizational Change, 13(1), 2-24. https://doi.org/10.1108/JAOC-03-2015-0032 https://doi.org/10.1108/JAOC-03-2015-003... )
Budgetary control	BudCont_1	1. The budget is monitored monthly	(Merchant & Van der Stede, 2007Merchant, K. A., & Van Der Stede, W. A. (2007). Management control systems: Performance measurement, evaluation and incentives. New York, NY: Pearson.; Scapens, 2006Scapens, R. (2006). Understanding management accounting practices: A personal journey. The British Accounting Review, 38(1), 1-30. https://doi.org/10.1016/j.bar.2005.10.002 https://doi.org/10.1016/j.bar.2005.10.00... ; Sponem & Lambert, 2016Sponem, S., & Lambert, C. (2016). Exploring differences in budget characteristics, roles and satisfaction: A configurational approach. Management Accounting Research, 30, 47-61. https://doi.org/10.1016/j.mar.2015.11.003 https://doi.org/10.1016/j.mar.2015.11.00... )
	BudCont _2	2. The variations identified are analyzed and explained	(Abernethy & Brownell, 1999Abernethy, M. A., & Brownell, P. (1999). The role of budgets in organizations facing strategic change: An exploratory study. Accounting, Organizations and Society, 24(3), 189-204. https://doi.org/10.1016/S0361-3682(98)00059-2 https://doi.org/10.1016/S0361-3682(98)00... )
	BudCont _3	3. The variations affect the executives’ performance evaluation	(Merchant & Van der Stede, 2007Merchant, K. A., & Van Der Stede, W. A. (2007). Management control systems: Performance measurement, evaluation and incentives. New York, NY: Pearson.; Scapens, 2006Scapens, R. (2006). Understanding management accounting practices: A personal journey. The British Accounting Review, 38(1), 1-30. https://doi.org/10.1016/j.bar.2005.10.002 https://doi.org/10.1016/j.bar.2005.10.00... ; Sponem & Lambert, 2016Sponem, S., & Lambert, C. (2016). Exploring differences in budget characteristics, roles and satisfaction: A configurational approach. Management Accounting Research, 30, 47-61. https://doi.org/10.1016/j.mar.2015.11.003 https://doi.org/10.1016/j.mar.2015.11.00... )
	BudCont _4	4. The planning and control mechanism is seen as something useful even if the accuracy (variation in the numbers) is not as desired	(Abernethy & Brownell, 1999Abernethy, M. A., & Brownell, P. (1999). The role of budgets in organizations facing strategic change: An exploratory study. Accounting, Organizations and Society, 24(3), 189-204. https://doi.org/10.1016/S0361-3682(98)00059-2 https://doi.org/10.1016/S0361-3682(98)00... )

Description/variables	Occurred accuracy	Acceptable accuracy	Elaborated based on:
	What is the level of occurred accuracy in the year in terms of percentage variation?	What would the acceptable percentage variation have been at the time of the forecast?
[P] Variation in revenue - %	Up to 5% > 5 < = 10% > 10% < = 20% and > 20%	Up to 5% > 5 < = 10% > 10% < = 20% and > 20%	(Becker et al., 2016Becker, S. D., Mahlendorf, M. D., Schäffer, U., & Thaten, M. (2016). Budgeting in times of economic crisis. Contemporary Accounting Research, 33(4), 1489-1517. https://doi.org/10.1111/1911-3846.12222 https://doi.org/10.1111/1911-3846.12222... ; Jordan & Messner, 2020Jordan, S., & Messner, M. (2020). The use of forecast accuracy indicators to improve planning quality: Insights from a case study. European Accounting Review, 29(2), 337-359. https://doi.org/10.1080/09638180.2019.1577150 https://doi.org/10.1080/09638180.2019.15... ; Shelley & Omer, 1996Shelley, M. K., & Omer, T. C. (1996). Intertemporal framing issues in management compensation. Organizational Behavior and Human Decision Processes, 66(1), 42-58. https://doi.org/10.1006/obhd.1996.0037 https://doi.org/10.1006/obhd.1996.0037... )
[P] Variation in gross margin - %
[P] Variation in net earnings - %
[P] Variation in return on equity - %
[M] Variation in the inflation assumption - %			(Adler & Chen 2011Adler, P. S., & Chen, C. X. (2011). Combining creativity and control: Understanding individual motivation in large-scale collaborative creativity. Accounting, Organizations and Society, 36(2), 63-85. https://doi.org/10.1016/j.aos.2011.02.002 https://doi.org/10.1016/j.aos.2011.02.00... ; Becker et al., 2016Becker, S. D., Mahlendorf, M. D., Schäffer, U., & Thaten, M. (2016). Budgeting in times of economic crisis. Contemporary Accounting Research, 33(4), 1489-1517. https://doi.org/10.1111/1911-3846.12222 https://doi.org/10.1111/1911-3846.12222... ; Jordan & Messner, 2020Jordan, S., & Messner, M. (2020). The use of forecast accuracy indicators to improve planning quality: Insights from a case study. European Accounting Review, 29(2), 337-359. https://doi.org/10.1080/09638180.2019.1577150 https://doi.org/10.1080/09638180.2019.15... ; Merchant & Van der Stede, 2007Merchant, K. A., & Van Der Stede, W. A. (2007). Management control systems: Performance measurement, evaluation and incentives. New York, NY: Pearson.; Shelley & Omer, 1996Shelley, M. K., & Omer, T. C. (1996). Intertemporal framing issues in management compensation. Organizational Behavior and Human Decision Processes, 66(1), 42-58. https://doi.org/10.1006/obhd.1996.0037 https://doi.org/10.1006/obhd.1996.0037... )
[M] Variation in supplier prices - %			(Adler & Chen 2011Adler, P. S., & Chen, C. X. (2011). Combining creativity and control: Understanding individual motivation in large-scale collaborative creativity. Accounting, Organizations and Society, 36(2), 63-85. https://doi.org/10.1016/j.aos.2011.02.002 https://doi.org/10.1016/j.aos.2011.02.00... ; Merchant & Van der Stede, 2007Merchant, K. A., & Van Der Stede, W. A. (2007). Management control systems: Performance measurement, evaluation and incentives. New York, NY: Pearson.)
[M] Variation in the exchange rate - %
[M] Variation in wages - %

Construct	Variable	Mean	Median	Min.	Max.	Standard deviation
Strategic planning	SP_1	4.04	5	2	5	1.22
	SP_2	3.92	4	2	5	1.17
	SP_3	3.96	4	2	5	1.09
	SP_4	3.88	4	2	5	1.15
	SP_5	3.69	4	2	5	1.26
Budget	Bud_1	4.27	5	2	5	1.08
	Bud_2	3.81	4	2	5	1.20
	Bud_3	3.83	4	2	5	1.11
	Bud_4	4.21	5	2	5	1.10
	Bud_5	3.83	4	2	5	1.20
Capital budget	CAPEX_1	3.56	4	2	5	1.22
	CAPEX_2	3.56	4	2	5	1.34
	CAPEX_3	3.65	4	2	5	1.33
	CAPEX_4	3.83	4	2	5	1.25
Base forecast	Forec_1	4.17	5	2	5	1.05
	Forec_2	3.83	4	2	5	1.14
	Forec_3	4.25	5	2	5	0.95
Rolling forecast	RolForec_1	3.25	3	2	5	1.30
	RolForec_2	3.42	4	2	5	1.27
	RolForec_3	3.52	4	2	5	1.23
Budgetary control	BudCont_1	4.33	5	2	5	1.12
	BudCont_2	4.30	5	2	5	1.01
	BudCont_3	3.79	4	2	5	1.24
	BudCont_4	4.29	5	2	5	1.00

	SP	CAPEX	Budget	Budgetary control	Base forecast	Rolling forecast	Market assumptions accuracy	Performance accuracy
SP_2	0.944	0.533	0.608	0.499	0.382	0.490	0.090	-0.028
SP_3	0.920	0.573	0.646	0.598	0.502	0.513	-0.010	0.017
SP_5	0.827	0.630	0.514	0.440	0.507	0.488	0.184	0.036
CAPEX_1	0.625	0.829	0.671	0.485	0.409	0.390	0.068	-0.003
CAPEX_2	0.513	0.799	0.715	0.450	0.479	0.553	-0.032	-0.091
CAPEX_3	0.497	0.829	0.502	0.513	0.390	0.413	0.082	-0.093
CAPEX_4	0.462	0.826	0.565	0.483	0.529	0.368	0.067	-0.007
Bud_1	0.486	0.678	0.911	0.547	0.469	0.388	0.080	-0.031
Bud_2	0.448	0.548	0.751	0.386	0.277	0.284	-0.041	-0.178
Bud_4	0.562	0.602	0.869	0.647	0.510	0.370	-0.033	-0.140
Bud_5	0.722	0.723	0.870	0.517	0.485	0.568	0.056	0.017
BudCont_1	0.377	0.469	0.552	0.857	0.578	0.194	0.186	-0.003
BudCont_2	0.560	0.577	0.544	0.907	0.769	0.381	-0.055	-0.179
BudCont_4	0.530	0.458	0.509	0.819	0.523	0.211	0.109	-0.084
Forec_1	0.469	0.444	0.438	0.648	0.927	0.415	0.013	0.041
Forec_2	0.378	0.444	0.366	0.587	0.888	0.486	-0.200	-0.203
Forec_3	0.526	0.573	0.569	0.729	0.867	0.481	0.008	0.042
RolForec_1	0.383	0.432	0.331	0.173	0.411	0.865	-0.156	0.060
RolForec_2	0.590	0.556	0.491	0.352	0.516	0.940	-0.043	-0.001
RolForec_3	0.537	0.459	0.492	0.334	0.491	0.947	-0.064	0.123
Delta_AccInflation%	0.080	0.053	0.039	0.090	-0.082	-0.118	0.965	0.301
Delta_AccExchange%	0.066	-0.007	-0.074	0.058	0.065	-0.032	0.590	0.073
Delta_AccInputPrices%	0.035	0.040	-0.024	0.016	-0.069	0.105	0.569	0.041
Delta_AccWages%	-0.091	-0.092	-0.128	0.200	0.009	-0.047	0.404	-0.082
Delta_AccRevenue$	-0.108	-0.117	-0.211	-0.201	-0.130	-0.036	0.271	0.821
Delta_AccMargin$	0.033	-0.180	-0.053	-0.094	-0.075	0.062	0.170	0.844
Delta_AccNetEarnings$	0.112	-0.026	-0.058	-0.041	0.083	0.094	0.095	0.795
Delta_AccROE%	0.053	0.100	0.048	-0.005	0.032	0.118	0.307	0.804

[1] * Corresponding author

Brasil

Brasil

Structure of Planning and Control Artifacts and their Accuracy in Brazilian Family Businesses

ABSTRACT

Objective:

Methods:

Results:

Conclusions: