The Impact of the Year-End Bonus Announcement for Stock Prices

• Main Authors: You-Ling Tsai, 蔡幼玲
• Other Authors: Che-Peng Lin
• Format: Others
• Language: zh-TW
• Published: 2013
• Online Access: http://ndltd.ncl.edu.tw/handle/21402668325917466019

碩士 === 國立彰化師範大學 === 企業管理學系 === 101 === Weitzman (1987) indicates that the year-end-bonus system provides contributions to the rapid growth of the East Asian economies. However, previous studies pay little attention to the year-end-bonus issue because this unique system is only adopted by corporations in Taiwan, Japan and Korea. Based on the viewpoint of investors, this study examines how the year-end-bonus announcements affect the company’s stock prices. The year-end-bonus information is observed from United Daily News and Economic Daily News, for the period between October 2008 and January 2013. This research applies event study methodology to investigate whether the year-end-bonus announcement will generate abnormal returns. Industry classification and the amount of bonuses are also considered in this study. The results show that： 1.At event day, the year-end-bonus announcements have significant positive impacts to stock prices. 2.After announcement, the electronics industry has the highest cumulative positive abnormal returns. However, negative abnormal returns are observed for financial industry on the second day after the event day. 3.It is found that the higher the year-end bonuses, the lower the accumulative abnormal returns.