The Relationships among Compensation Structure,Human Capital and R&D Investment after Expensing Employee Bonus

• Main Authors: Yu-Zheng Wang, 王雨正
• Other Authors: Cheng-Jen Huang
• Format: Others
• Language: zh-TW
• Published: 2010
• Online Access: http://ndltd.ncl.edu.tw/handle/91834993124179567031

碩士 === 東海大學 === 會計學系 === 98 === In order to consistent with the international practice, since 2008, employee bonus must be recognized as expense in Taiwan. This study takes the publicly listed companies of electronic industry from 2005 to 2008 in Taiwan as the research objects. I use path analysis to examine the relationship among compensation structure, human capital and R&D investment after the policy of “expensing employee bonus”. The empirical result shows that after expensing employee bonus, the ratio of top executive’s equity compensation decrease, and the ratio of top executive’s equity compensation decrease will lead to the decrease of human capital quality and R&D investment. Compensation structure will affect R&D investment indirectly through human capital. Therefore, the design of the compensation system not only affects the quality of human capital, but also affects the motivation of top executive to develop R&D. This study suggests that the design of the compensation system is the key factor to maintain the company's human capital and R&D investment, so that the company can sustain competitive advantage in highly volatile environment.