The Impact of Production Efficiency on Expensing Employee Bonus－An Empirical Evidence of Taiwan IC Design Industry

• Main Authors: Wei-kai Lin, 林唯凱
• Other Authors: Pin-wen Lin
• Format: Others
• Language: zh-TW
• Published: 2009
• Online Access: http://ndltd.ncl.edu.tw/handle/10305074334815902005

碩士 === 東吳大學 === 國際經營與貿易學系 === 97 === Employee bonuses and employee stock options (ESOs) was considered the main reason contribrting the achievements of techinology industry in Taiwan. In the past, employee bonuses were treated as a deduction from retained earnings to enhance the effect of financial report; therefore the believable of financial report debted.In order to improve financial report contact with international accounting system. Since January 1, 2008, new accounting regulation mandates companies to recognize the relevant compensation costs as an expense item and cannot be listed the subtact of retained earning; therefore several experts predict firm value of high techinology industry will be lashed. In this paper, we used stable analysis method of Data Envelopment Analysis (DEA) and movement analysis method of Malmquist productivity index to investigate the production performance of fifty companies of IC design industry in TSE and OTC from 2005 to 2009 Q1 before and after new accounting regulation. We using R&D expense, operating expense and the number of employee as input variables, otherwise, we using operating gross margin, operating profit margin, net profit margin, and return of stock price as output variables. We find out pure techinoloty efficiency value, scale efficiency value and entire techinology value of IC design industry all decrease after new accounting regulation to take effect. In Malmquist productivity index empirical results show up the average efficiency of IC design industry have similar result of DEA method empirial result. We also find out some operate efficiency firms future development capacity have show up decrease situation obviously.