The Effect of Employee Stock Ownership Plans, Management Types, and Managers Ownership on Firms Performance

• Main Authors: Chih-Chuan Chen, 陳致全
• Other Authors: HU, WEI SHAN JOHN
• Format: Others
• Language: zh-TW
• Published: 2005
• Online Access: http://ndltd.ncl.edu.tw/handle/61624215057490888138

碩士 === 中原大學 === 會計研究所 === 93 === Employee stock ownership plans (ESOPs) have been widely adopted in the electronic industry in Taiwan for many years. However, this system in Taiwan has also caused much controversies during past three years mainly because Taiwanese companies usually treat ESOPs as an appropriation of earnings and were not included in the income statement. This method was raised much concern from internationally institutional investors. Moreover, the Chairman also pluralizing as the CEO (management type) of some electronic companies in Taiwan participating in the ESOPs are deeply concerned by internationally institutional investors. This study attempts to examine whether the participation of the chairman pluralizing as the CEO in ESOPs improves the performance of the company or not. The empirical results of this work are summarized as follows: 1. This study finds that there is a significantly positive relation between the performance of the company and the ESOPs of last year, the ESOPs of the current year, and the cash bonus of the current year. However, there is no significant relationship between cash bonus of the previous year and the performance of the company. There is also a significantly positive relation between the stock appropriation ratio and the performance of the company under both the surplus appropriation method and the face value method. However, there is a significantly negative relation between the performance of the company and the stock appropriation ratio under the market price method. 2. The finding indicates that the participation of the Chairman of the broad also pluralizing as the CEO in ESOP has no correlation with the performance of the company for non-hightech industries, yet it has a significantly negative relation between them for the high-tech industry. 3. This investigation dose not find any significant relationship between the ownership of managers and the performance of the company.