The Study on How the Electronic Companies Cope With the Expensing Employees’ Bonus
Date Issued
2008
Date
2008
Author(s)
Feng, Shin-Yi
Abstract
Abstractith the amendments of Business Accounting Law in 2006, the employees’ bonus should be expensing, and will come into operation in 2008. But it arises two problems to companies: one is the company profitability will decrease drastically. The other is the brain-drain. Because of the salaries of electronic companies in Taiwan are much lesser than those of other countries. In the past, the companies used stock bonus to perquisite employees’ income and to attract employees. But the stock bonus has to be discounted by stock price under the new regulation. Because of the real income of employees will decrease a lot in new rules, the employees will consider to quite job.he purpose of this essay is to treat how the electronic companies cope with expensing employees’ bonus and to understand the determinants of companies about each measure. Using the data is from 2006 to 2007, the empirical results show that:.The electronic companies with higher stock price apt to carry out the measures during 2006 to 2007..The electronic companies with higher employees’ stock bonus, higher scale and higher developing opportunity apt to adopt the measure of employees’ stock option plans..The electronic companies with higher stock price, lower employees’ stock bonus, lower profitability apt to adopt the measure of raising employees’ salaries..The electronic companies with higher profitability, lower stock price, higher cash flows and more EPS decreasing apt to adopt the measure of repurchase treasury stocks..IC design, higher scale and higher developing opportunity companies have more chances and more demands to carry out measures.t last, this essay could help us to understand the determinants of companies and the reason why the different companies carry out different measures.ey words: Expensing employees’ bonus, Employees’ stock option plan, Stock bonus, Treasury stock, Logit model.
Subjects
Expensing employees’ bonus
Employees’ stock option plan
Stock bonus
Treasury stock
Logit model
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