Study of the Impacts of Expensing Employee Bonus on Stock Returns
碩士 === 國立臺北大學 === 企業管理學系碩士在職專班 === 95 === The Business Accounting Act was amended by the Legislative Yuan on April 28, 2006. As a result, employee stock bonus of a firm can no longer be treated as earning to be allocated instead they will be treated as wage costs in each year's income statement...
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| Format: | Others |
| Language: | zh-TW |
| Published: |
2007
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| Online Access: | http://ndltd.ncl.edu.tw/handle/56521076964088392681 |
| Summary: | 碩士 === 國立臺北大學 === 企業管理學系碩士在職專班 === 95 === The Business Accounting Act was amended by the Legislative Yuan on April 28, 2006.
As a result, employee stock bonus of a firm can no longer be treated as earning to be allocated instead they will be treated as wage costs in each year's income statement.
This study employs the event study approach to investigate the impact of the amendment of the Business Accounting Act on stock returns. The date of the amendment was set as the event day. Stock return were analyzed before and after the event day to see if there exhibit abnormal returns and to analyze how investors react to the expensed stock bonus.
Empirical results show that investors negatively reacted to the expensed stock bonus, The cumulative abnormal returns were with negative trend as well. Regression result show that the volatility of the stock return is significantly negatively related to the ratio of the employee stock bonus. As a result, we concluded that the employee stock bonus system is an important incentive for investors.
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