Performance of exective stock option and stock bonus schemes in Taiwan

• Main Authors: Yu-Wen Yang, 楊雨雯
• Other Authors: Shin-Rong Shiah Hou
• Format: Others
• Language: en_US
• Published: 2003
• Online Access: http://ndltd.ncl.edu.tw/handle/83965361406095539712

碩士 === 元智大學 === 財務金融研究所 === 91 === The aim of this study is to investigate the associations between compensation and firm performance and the determinant of equity-based compensations in Taiwan. In particular, it emphasizes on executive stock option (ESO) and stock bonus compensation schemes and attempts to examine how compensation schemes may affect market performances, operating performances and multiples performances. The results suggest three main findings as follows. First, firms with larger size or high growth opportunity tend to adopt executive stock option and stock bonus compensation schemes. Second, there exist weak relationship between executive stock options and subsequent firm performances after the adoption of executive stock option. Thirdly, it suggests positive relationship between stock bonuses and firms’ operating performance. Moreover, it also finds that stock bonus payments have lagged effects on subsequent firm performance. This thesis concludes that stock bonus payments do provide some incentives for the employees to work in the interests of shareholders, that is, to improve firm performances.