An Empirical Study of the Influence of R&D Expenditures, Business Performance on CEO Compensation Level

• Main Authors: Yung-Hsu Yang, 楊詠絮
• Other Authors: Mushang Lee
• Format: Others
• Language: zh-TW
• Published: 2006
• Online Access: http://ndltd.ncl.edu.tw/handle/67407431905512397633

碩士 === 中國文化大學 === 會計研究所 === 95 === This study discusses whether compensation committees prevent reductions in R&D expenditures. This study hypothesize that changes in R&D spending are positively associated with changes in CEO compensation in (1) when the CEO approaches turn-over, and (2) when the firm faces a small earnings decline or a small loss. The results indicate that the association between changes in R&D and changes in the CEO com-pensation is not significantly correlated in the above two situations. Besides, the com-pensation is one of the motivations of the work. If the company gives the higher com-pensation level. In addition, CEO has the encouraged motivation to make more effort to enhance company’s business performance. The results indicate that in accounting-based, the association among Return on Equity (ROE), Earnings per Share (EPS) and the CEO compensation is positive. Regarding stock market, the overall economic environment and some external factors will affect the stock price. Meanwhile, accounting basis is more important than market basis for determining CEO performance.