Abstract: The attitude to budgeting and relevant incentives as the variables were introduced in budgeting process with the questionnaires returned to analyze further the relationship between managers' behavior of participating in budgeting and management performance, thus developing a structural equation model. It was found that there was a positive correlation between the managers who have participated in budgeting and management performance, and the relevant incentives can regulate such a correlation, i.e., the incentives directly regulate the relation between managers' participation and management performance, while managers'attitude to budgeting as a mediating variable indirectly regulate the relation.