Insider Ownership、Employee Bonus and Director Compensation and Firm Performances：An Empirical Study

• Main Authors: Ya-Ling Chen, 陳雅菱
• Other Authors: Chung-Kuang Chen
• Format: Others
• Language: zh-TW
• Published: 2007
• Online Access: http://ndltd.ncl.edu.tw/handle/78059080823568239103

碩士 === 中原大學 === 會計研究所 === 95 === The research is about endogenous relation existing between insider ownership, employee bonus and director compensation, firm performances. If we used the way of ordinary least square, parameter estimates maybe would produce biases and inconsistency. To get more correct parameter estimate, we will set up simultaneous equations, the mutual effect within variables is handled by 2SLS. The result is showed that firm performances and insider ownership ratio are relationship of endogenous variables; by the way, insider ownership ratio has the same relationship with employee bonus and director compensation. Consider variables endogenous, firm performances will first go down then up, along increasing of insider ownership ratio, finally turn into going down. We learned they are non-linear association from this result. Firm performance has significantly positive association both with employee bonus and director compensation. This result indicate corporations shared earnings with employees and directors who service in the corporation, it will have inspire effect and lower agency cost. Besides, we can’t find significant association within insider ownership ratio, employee bonus and director compensation. In other words, insider ownership ratio doesn’t have any influence with employee bonus and director compensation.