Can Market Correctly Evaluate the Employee Bonus Information – The Impact of Expensing Employee Bonus

碩士 === 中原大學 === 會計研究所 === 100 === Abstract Article 64 in Business Accounting Law in Taiwan was revised on May 24, 2006, and expensing employee bonus on January 1, 2008. This study investigates the impact of employee bonus on firm value after expensing employee bonus. The purpose of this study is to...

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Main Authors: Guo-Shu Huang, 黃國書
Other Authors: Chao-Jung Chen
Format: Others
Language:zh-TW
Published: 2012
Online Access:http://ndltd.ncl.edu.tw/handle/49612313405315434974
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spelling ndltd-TW-100CYCU53850122015-10-13T21:32:34Z http://ndltd.ncl.edu.tw/handle/49612313405315434974 Can Market Correctly Evaluate the Employee Bonus Information – The Impact of Expensing Employee Bonus 市場是否可以正確評價員工分紅資訊-員工分紅費用化前後之影響 Guo-Shu Huang 黃國書 碩士 中原大學 會計研究所 100 Abstract Article 64 in Business Accounting Law in Taiwan was revised on May 24, 2006, and expensing employee bonus on January 1, 2008. This study investigates the impact of employee bonus on firm value after expensing employee bonus. The purpose of this study is to examine (1) whether the incentive (diluted) effect of employee bonus is more pronounced after expensing employee bonus? (2) Can the market investors rationally reflect the information of employee bonus after expensing employee bonus. (3) Whether the growth opportunities influence the relation between employee bonus and firm value? Study samples are from listed and over-the-counter companies in Taiwan using data from 1996-2010. The empirical results show that (1) In the full sample or high-growth subsample, the incentive effect of employee cash bonus on the firm value is more pronounced after expensing employee bonus. (2) In the low-growth subsample, the diluted effect of employee cash bonus and employees stock option on the firm value is more obvious after expensing employee bonus. That means the market investors toward employee bonus for the different growth companies have different evaluation. This study further examines that whether market investors rationally reflects the information of employee bonus after expensing employee bonus. Empirical results find that (1) After expensing employee bonus, financial statements correctly express the company financial position and operating results, thereby improving the information quality of financial statements. The market investors rationally reflect the information of employee cash and stock bonus and remuneration of directors and supervisors after expensing employee bonus in full sample. (2) In the high-growth subsample, the market investors overprice the information of employee cash bonus after expensing employee bonus. The empirical results indicate that the market investors overestimate firm value because of high future investment opportunities. Therefore, the market investors overprice the employee bonus information. (3) In the low subsample, the market investors underprice the information of employee’s stock option after expensing employee bonus. The empirical results indicate the market investors give the low evaluation because of low future investment opportunities. And the market investors are modify the stock price and profitability. Therefore the market investors underprice the employee bonus information. Chao-Jung Chen 陳昭蓉 2012 學位論文 ; thesis 87 zh-TW
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description 碩士 === 中原大學 === 會計研究所 === 100 === Abstract Article 64 in Business Accounting Law in Taiwan was revised on May 24, 2006, and expensing employee bonus on January 1, 2008. This study investigates the impact of employee bonus on firm value after expensing employee bonus. The purpose of this study is to examine (1) whether the incentive (diluted) effect of employee bonus is more pronounced after expensing employee bonus? (2) Can the market investors rationally reflect the information of employee bonus after expensing employee bonus. (3) Whether the growth opportunities influence the relation between employee bonus and firm value? Study samples are from listed and over-the-counter companies in Taiwan using data from 1996-2010. The empirical results show that (1) In the full sample or high-growth subsample, the incentive effect of employee cash bonus on the firm value is more pronounced after expensing employee bonus. (2) In the low-growth subsample, the diluted effect of employee cash bonus and employees stock option on the firm value is more obvious after expensing employee bonus. That means the market investors toward employee bonus for the different growth companies have different evaluation. This study further examines that whether market investors rationally reflects the information of employee bonus after expensing employee bonus. Empirical results find that (1) After expensing employee bonus, financial statements correctly express the company financial position and operating results, thereby improving the information quality of financial statements. The market investors rationally reflect the information of employee cash and stock bonus and remuneration of directors and supervisors after expensing employee bonus in full sample. (2) In the high-growth subsample, the market investors overprice the information of employee cash bonus after expensing employee bonus. The empirical results indicate that the market investors overestimate firm value because of high future investment opportunities. Therefore, the market investors overprice the employee bonus information. (3) In the low subsample, the market investors underprice the information of employee’s stock option after expensing employee bonus. The empirical results indicate the market investors give the low evaluation because of low future investment opportunities. And the market investors are modify the stock price and profitability. Therefore the market investors underprice the employee bonus information.
author2 Chao-Jung Chen
author_facet Chao-Jung Chen
Guo-Shu Huang
黃國書
author Guo-Shu Huang
黃國書
spellingShingle Guo-Shu Huang
黃國書
Can Market Correctly Evaluate the Employee Bonus Information – The Impact of Expensing Employee Bonus
author_sort Guo-Shu Huang
title Can Market Correctly Evaluate the Employee Bonus Information – The Impact of Expensing Employee Bonus
title_short Can Market Correctly Evaluate the Employee Bonus Information – The Impact of Expensing Employee Bonus
title_full Can Market Correctly Evaluate the Employee Bonus Information – The Impact of Expensing Employee Bonus
title_fullStr Can Market Correctly Evaluate the Employee Bonus Information – The Impact of Expensing Employee Bonus
title_full_unstemmed Can Market Correctly Evaluate the Employee Bonus Information – The Impact of Expensing Employee Bonus
title_sort can market correctly evaluate the employee bonus information – the impact of expensing employee bonus
publishDate 2012
url http://ndltd.ncl.edu.tw/handle/49612313405315434974
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