The Relationship Between Corporate Salary Level, Financial Performance and Stock Price Performance-An Empirical Study of Taiwanese Listed and OTC companies

• Main Authors: SUN, YI-NUNG, 孫衣穠
• Other Authors: CHEN, CHENG-YU
• Format: Others
• Language: zh-TW
• Published: 2019
• Online Access: http://ndltd.ncl.edu.tw/handle/nqd8j9

碩士 === 國立屏東大學 === 財務金融學系碩士班 === 107 === 　　This papers study whether the average salary is related to financial performance for the listed companies and OTC companies in Taiwan from 2004 to 2017. In addition, we use the financial crisis year as the cutting point to discuss, which is divided into: the whole period (2004~2017), the early period (2004~2009) and the later period (2010~2017). Then we rank the average salary into ten groups to set up each portfolio, then to buy the highest salary and sell the lowest salary group(Zero Position Portfolio) to verify whether there is abnormal return for these portfolios. 　　The result about the relationship between the salary and financial performance shows that there is no significant impact between average salary and financial performance at the time of the whole period and the previous period. However, there is obvious changes after the financial crisis. Whether the financial performance affects the average salary or the average salary affects financial performance, most of the results are positive and significant. We can find that business owners have paid more attention to the government's announced policies and corporate social responsibility (CSR) after the financial crisis. The result about the portfolio shows that there is no big difference between the rate of return for the ten portfolio which exist abnormal return except the zero position portfolio, no matter for raw returns or the Fama-French three-factor model. It is possible to know that there is no reference value for salary as a stock choosing indicator. And the high financial performance of high-paying companies does not reflect in the stock market return significantly.