Vertical Information Sharing: According to Hopwood, (1976, cited in Parker and Kyj, 2006) information sharing between superiors and subordinates is one of the major benefits of the budgeting process. Shields and Shields (1998, cited in Parker and Kyj, 2006) argue that sharing information during the budget process between the superior and the subordinate is of great importance because both the individual and the organization can potentially benefit from it . Survey results show (Parker and Kyj, 2006) that vertical information sharing plays a huge role in understanding the performance effects of organizational commitment and budget participation. Role ambiguity is the intervening variable between the relationship between organizational commitment and budget participation (Parker and Kyj, 2006). Vertical information sharing is sharing information upwards and downwards. Upward Information Sharing The flow of information from the subordinate to the superior is called upward information sharing, the subordinate reveals information that is not known to the superior. Subordinates often know more about their daily operations than their superiors. Baiman (1990, as cited in Parker and Kyj, 2006) states that the agent contains private information about the area for which it is responsible. Chow et al. (1988 cited in Parker and Kyj, 2006) state that upward information sharing can be valuable because it is difficult or impossible for superiors to acquire this information without help from subordinates. This information is called private information and contains strategic uncertainties that challenge the organization (Simons, 1995, as cited in Parker and Kyj, 2006). Shields and Young (1993, as… mid-article… as cited in Fisher et al., 2002) explain that competition between subordinates can increase when subordinates feel the desire to outperform their colleagues. workers in budget proposals and in their actual performance. Subordinates may also decide not to submit a budget proposal when they feel social pressure because they have less motivation or ability than their colleagues (Young, 1985, cited in Fisher et al., 2002). Subordinates will lead to budget optimization. A possible problem can arise if the superior uses higher budget proposals for subordinates as a standard, the benefits can therefore be very low when subordinates present lower budgets (Fisher et al., 2002). When subordinates present significantly lower budgets than their colleagues, they may also be sanctioned by their superior (Fisher et al.., 2002).