The relationship between expensing employee bonus and dividends payout

• Main Authors: Mo-Ju Chien, 簡茉茹
• Other Authors: Chu-yang Chien
• Format: Others
• Language: zh-TW
• Published: 2010
• Online Access: http://ndltd.ncl.edu.tw/handle/97824500219587056029

碩士 === 雲林科技大學 === 會計系研究所 === 98 === The profit sharing for employees was sort of a hidden salary payment as distribution of surplus until the realization of sharing cost. Since employees are given only stocks, the financial statements will exhibit nothing. If you reexamine the financial statements of many listed companies by adding back the hidden payments, a plethora of these companies are simply sugarcoated bronze that is not as shiny as it seems. The paper thus discusses how the managers of a number of companies compress the dividend payout due to surplus of financial statements until the realization of employees’ profit sharing costs, rendering incomplete distribution of dividend. The study takes an enlisted electronic stock company in Taiwan as an example to probe the impact of employee profit sharing costs on dividend distribution using multiple regression analysis in the period of 2005-2007. It also covers—by T-test analysis—the comparison of dividend distribution rates between expensing and non-expensing of employee profit sharing. It yields to 2 findings: 1.As evidenced in net profits of par value and pro forma market value, the explanatory power of par value net profits is greater than that of pro forma market value in terms of dividend distribution rate. It could be that the time frame of the study was characterized by high fluctuations of price. Distortion of surplus may arise if using market value. Despite significant results of dividend distribution rate were found with such method, the effect of evidence was weakened due to inadequate explanatory power. 2.The results of T-test of dividend distribution rates with and without virtual expensing of profit sharing vary significantly. Nevertheless, there is no disparity between the T-test results of dividend rates prior to and post the realization of virtual expensing of employee profit sharing. It turns out the dividend distribution rates were tantamount before and after the virtual expensing of employee profit sharing.