예산의 톱니현상에 대한 실증연구

We empirically investigate whether increases in sales targets are positively related to previous year performance relative to target. We also examine that when previous year performance fails to meet target, the relationship between target changes and performance is lower. Moreover, we test the moderating effect of monitoring on the association between target changes and performance. Using 742 store-year data of an apparel company in Korea from 2014 to 2017, we perform ordinary least square regression analysis to achieve the purpose of research. We find that prior-year performance relative to target has significantly positive effect on increases in sales targets, which implies that budget ratcheting occurs. In addition, we also find evidence that the relationship between target changes and performance is lower when previous performance falls short of target, which means that target changes downward are smaller. Further, we present evidence that the association between target changes and performance is significantly weaker when the monitoring of the head office on sales managers increases. These test results provide the empirical evidence on the existence of budget ratcheting and asymmetric pattern of ratcheting. Moreover, the finding on monitoring as one of the factors affecting ratcheting makes differentiated contributions to the existing research. Thus this study can not only provide additional test results on ratcheting in a different setting from previous research, but also facilitate future empirical research on ratcheting. This study also helps practitioner to understand the characteristics that affect the goal setting and to develop control mechanism in budgeting process.