The Impact of Expensing Employee Bonus of Firm's Performance

• Main Authors: Chien, yi ping, 簡依萍
• Other Authors: Chen, dar hsin
• Format: Others
• Language: zh-TW
• Published: 2009
• Online Access: http://ndltd.ncl.edu.tw/handle/03566829126486926816

碩士 === 國立臺北大學 === 企業管理學系 === 97 === From 2008, the policy of “Expensing employee bonus” implemented domestically. The accounting for employee bonus officially reclassified from a rdeuction account under shareholders’ equity to an expense, which is consistent with international practices. The accounting of No. 38 carried out at the same time, which provides that giving any type of stock to employee. When firms issue the finanical statement on April 30, 2008, must have to estimate and recognize employee bonus and director compensation to expense of company in advance, which base on the price of markdet. This studay focus on the impact of expensing employee bonus on firm’s prformance in three different ways of employee bonus. This study takes ROA, ROE and Tobin’s Q as independent variables, and cash bonus, stock bonus and stock option bonus as independent variables. To show real situation, this study use market price and Black-Scholes model to evaluate stock and options bonus’ fair-value. The sample data is collected between 2002 to 2007, chosing 821 publicly listed companies at stock exchange market and over-the-counter market from the food, plastic, textile, electric, cable, chemical, steel, electronic and construction industry. Using Paired t test and Panel Data to examine the relationships between expensed employee bonus and firm’s performance. The empirical results are summarized as follows： 1.If this study uses financial performance to proxy the firm’s performance, it was found that expensed employee bonus reduce significantly firm’s performance. The phenomenon observed above is more profound in the electronic. But if this study uses market performance to proxy the firm’s performance, it was found that expensed employee bonus do not affect company performance. 2.No matter what performance measure this study uses, financial performance or market performance to proxy the firm’s performance, it was found that the positive effect of employee cash bonus and stock bonus on the firm’s performance. 3.No matter what performance measure this study uses, financial performance or market performance to proxy the firm’s performance, it was found that employee stock option do not significantly affect the firm’s performance.