Study on the motivation of granting early Employee Stock Options in Anticipation of SFAS No.39 in Taiwan

• Main Authors: Yu-Chuan Lin, 林祐全
• Other Authors: Fu-Hsing Chang
• Format: Others
• Language: zh-TW
• Published: 2009
• Online Access: http://ndltd.ncl.edu.tw/handle/19547105479191466289

碩士 === 國立中正大學 === 會計與資訊科技研究所 === 97 === The expensing of employee profit sharing and SFAS No. 39 - Accounting for share-based payments became effective in Taiwan since 1 Jan 2008. As a result, the shares and warrants that were widely issued by local corporations as forms of employee profit sharing are now required to be marked-to-market, with differences recognized through the income statement. For this reason, many companies have applied to the Financial Supervisory Commission for the issuance of employee stock options (ESO) prior to the effective date of SFAS No. 39. This research is aimed at investigating the motivation of those Taiwanese public listed companies who opted to issue ESO''s prior to 1 Jan 2008, the date SFAS No. 39 became effective. We approached this discussion from the perspectives of human resources, corporate agency conflicts, and accounting. Our study revealed that companies with agency conflicts had a tendency to issue ESO’s before SFAS No. 39 took effect; while human resouces and accounting factors did not constitute material considerations for companies issuing ESO’s prior to SFAS No. 39.