| Summary: | 碩士 === 國立交通大學 === 管理學院碩士在職專班經營管理組 === 96 === For years foreign institutional investors have negative opinions to Taiwan companies’ unique employee profit-sharing programs. Taiwan’s general accepted accounting principles (GAAP) see employee stock bonus in different point of view from International GAAP. International GAAP treats employee stock bonus as salary expenses while Taiwan GAAP treats it as profit sharing.
In April 2006, the pass of amendment of Business Entity Accounting Law confirms the principle of expensing of employee profit-sharing. On January 1, 2008 Financial Supervisory Commission (FSC) announced that corporate financial reports have to follow international GAAP and the employee profit-sharing is categorized into salary expenses.
Expensing of employee profit-sharing is a great change of accounting principle in Taiwan. The impact on corporate employee profit-sharing programs is expected. Investors in the market will also have new opinions and insights to the change. This study starts with business valuation models and tries to elaborate the difference of corporate value between before-implementation and after-implementation. This study also tries to identify the influence of implementation of expensing of employee profit-sharing on corporate decision-making efficiency, national economy growth, and capital market stability.
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