Performance-based budgeting and its impact on control effectiveness: A case study of the state university of Indonesia

This study aims to empirically analyse the impact of performance-based budgeting on control effectiveness, including the financial control effectiveness and the performance control effectiveness at Airlangga University. The study's sample included the Dean and Vice Dean of financial affairs at Airlangga University. The method of data collection was purposive sampling through the distribution of questionnaires. The research variables were performance-based budgeting, financial control effectiveness, and performance control effectiveness. Hypothesis testing was carried out using regression analysis. The results of statistical tests show that performance-based budgeting had a positive and significant influence on financial control effectiveness, while performance-based budgeting had no significant effect on performance control effectiveness. These study findings indicate that the management of Airlangga University needs to prepare standard operating procedures to improve the implementation of performance-based budgeting.