Over several decades management accounting scholars have been studying the issue of how budgetary participation affects organisational behaviour such as managerial performance. However, the results of these studies have not always been consistent. It can be concluded that no simple relationship exists between budgetary participation and managerial performance. The current study reconciles the reasons for these inconsistencies and identifies a moderating factor that might affect the relationship between budgetary participation and managerial performance. By using the contingency approach, information asymmetry factor has been taken into consideration as a moderator that might affect the relationship. The results explain the relationship in terms of managers possessing more information and participating in the budgeting process were reported to be associated with improved performance. In contrast, participation by managers exhibiting less information flow was associated with diminished performance.