| Summary: | 碩士 === 國立高雄應用科技大學 === 商務經營研究所 === 99 === In Taiwan, employees bonuses are treated as a deduction of retained earnings. Such treatment seriously ruins the fair presentation of financial statements. However, to converge with International Accounting Standards, Taiwan promulgated Statement of Financial Accounting Standards (SFAS) No. 39 “Accounting Standard of Stock-based Compensation” and implemented after January 1, 2008. The purpose of this paper is to study the effect of employee compensation on firms’ operating performance after expensing employee bonuses and stock options.
The result indicates that:
1. Employee bonuses, employee stock options, or both do not have positive effect on ROA and ROE significantly after imputed employee compensation as expenses. However, employee bonuses, employee stock options, or both do have positively and significantly effect on Tobin’s Q.
2. After implementing SFAS No.39, employee bonuses, employee stock options, or both are positively related to ROA and ROE. As to Tobin’s Q, only employee bonuses do.
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