The Effect of Expensing Employee Bonuses on Stock Bonuses System

• Main Authors: Chio Pai,Chen, 陳秋白
• Other Authors: Wen Chih,Lee
• Format: Others
• Language: zh-TW
• Published: 2011
• Online Access: http://ndltd.ncl.edu.tw/handle/61307166432376909260

碩士 === 國立高雄應用科技大學 === 商務經營研究所 === 99 === Statement of Financial Accounting Standard (SFAS) No.39 “Accounting Standard of Stock-based Compensation” is promulgated on January 1, 2008. SFAS No.39 treats employee compensation as expenses, not a reduction of retained earnings. In addition, stock-based employee compensation should be measured by fair value rather than par value. The purpose of this study is to investigate the effect of expensing employee bonuses on stock bonuses system. Findings are as following. 1. After expensing employee bonuses, the quantity of stock compensation decreases. 2. Relative to other industry, electronic industry pays more quantity of stock compensation. 3. However, electronic industry pays less quantity of stock compensation after expensing employee bonuses. 4. This paper doesn’t find that stock compensation decrease for high price firms after SFAS No. 39. 5. The same result also applies to high growth firm. That is, high growth firms don’t pay less stock compensation even SFAS No.39 is implemented.