Investors’ Perceptions on Mandatory Bonuses: The Role of Corporate Governance

• Main Author: 李欣恬
• Other Authors: 陳皆碩
• Format: Others
• Language: zh-TW
• Published: 2016
• Online Access: http://ndltd.ncl.edu.tw/handle/32132687705186740873

碩士 === 國立彰化師範大學 === 會計學系 === 104 === In order to solve the problem of low wage and increase labor income in Taiwan, the authority proposed mandatory bonuses in 2015, resulting in large society concerns. This study uses the event study to investigate whether mandatory bonuses would cause abnormal returns for listed companies, and discuss how the role corporate governance plays and its moderated effects on abnormal returns. The empirical results show that investors view mandatory bonuses as an incentive effect, listed companies have significantly positive abnormal returns. When the market has positive abnormal returns, the companies with better corporate governance have lower abnormal returns. On the other hand, when the market has negative abnormal returns, the companies with better corporate governance have higher abnormal returns. This study suggests that when the market has positive abnormal returns, the companies with better corporate governance do not lead to higher abnormal returns. On the other hand, when the market reaction to the events related to mandatory bonuses gradually ease and has negative abnormal returns, better corporate governance can mitigate the adverse impact and play a role of share stabilization, lead to higher abnormal returns.