Profit Sharing and Firm Performance:

• Main Authors: Hsiao-Ling Chau, 趙曉玲
• Other Authors: Nien-Chi Liu
• Format: Others
• Language: zh-TW
• Published: 2002
• Online Access: http://ndltd.ncl.edu.tw/handle/22407996921282044289

碩士 === 國立中央大學 === 人力資源管理研究所 === 90 === Taiwan’s high-tech firms have been growing rapidly in the past decade. Profit sharing and employee stock ownership plans, which are able to attract and retain high quality employees for high-tech firms, have been thought as one the key successful factors of the high-tech firms in Taiwan. It causes more and more popular to adopt cash and stock profit sharing in the overall industries in Taiwan. However, there are very few empirical studies concerning about the effects of employee stock ownership plans on firm performance in Taiwan. In order to fill the research gap, the study collected a financial data during 1998-2000 from 929 firms to examine the effects of employee stock ownership plans on firm performance. This study tested the effects of two types of profit sharing plans - cash bonus and stock bonus plans. The results indicated that firms with each type of profit sharing programs did not perform better than firms without these group incentive programs. However, firms with either cash profit sharing or stock profit sharing plans did have positive effective on profitability. Further, this study found that cash had better productivity effect than stocks awards. In the contrary, stock profit sharing had better profitability effect than cash awards.