The Impacts of Expensing Employee Bonus on Firm’s Economic Value Added

• Main Authors: Ming-Syu Liu, 劉名栩
• Other Authors: none
• Format: Others
• Language: zh-TW
• Published: 2008
• Online Access: http://ndltd.ncl.edu.tw/handle/91486104425650798900

碩士 === 國立中正大學 === 企業管理所 === 96 === The America’s firms used ESOP(Employee Stock Option Plan) for a long time. Its accounting practices is regulated in APB No.25 and SFAS No.123. In America, they take ESOP into firms’ expense, they use market value to measure the stock bonus’ value and use fair-value to evaluate the stock option which firms share with employees. Since January 1,2008, due to the emphasis on international accounting standards and information transparency, Ministry of Economics Affairs in Taiwan forced firms should recognize employee bonus as expense, its accounting principles follows the regulation of ROC statement of Financial Accounting Standards No.39. This study focus on the impact of expensing employee bonus on firm’s EVA in three different ways of employee bonus and different industries. This study takes two kinds of EVA as dependent variable, and cash bonus, stock bonus and stock option bonus as independent variables. To show real situation, this study use market price and Black-Scholes model to evaluate stock and options bonus’ fair-value. The sample data is collected between 1997 to 2006, choosing firms which had used ESOP plan between this time., and dividing the sample data into electronic and non-electronic industry. Using Paired t test ,multiple regression analysis and robustness test to examine the relationships between expensed employee bonus and EVA. The empirical results are as follows: 1.The firm value is significantly negative related to the expensed employee bonus. 2.The impact of expensing employee bonus on firm’s value is different in different industries. In the electronic industry, the impact is greater than in non-electronic industry, especially stock option. The expense of stock option has significantly negative impact on value-creating of electronic firms.