Executive Compensation Structure and Firm’s Future Performance in Depression Era: Considering the Corporate Life Cycle

• Main Authors: Chao-Chieh Chan, 詹照潔
• Other Authors: Hui-Sung Kao
• Format: Others
• Language: zh-TW
• Published: 2012
• Online Access: http://ndltd.ncl.edu.tw/handle/678d42

碩士 === 逢甲大學 === 會計所 === 100 === This paper purpose in depression era, how to through the compensation enhance firm’s future performance. Moreover, according to corporate life cycle perspective, when firm face a different compensation through the life cycle to enhance the firm’s future performance. This study has taken the listed companies in Taiwan as example and mainly to the global financial crisis in 2007-2008 years to measure the economic depression, this time to explore how to design executive compensation. To motivate senior managers of the efforts to promote the firm reverts quickly to the standard of business performance. This study used multiple regression analysis, the main findings in the economic depression, different types of remuneration for senior managers will result in different impacts firm performance. First, the overall total compensation of senior managers with the firm’s future performance is a significant positive relationship. Furthermore, this study found the depression era and the boom era in the contrary, in depression era, the company will focus on the issuance of senior managers to determine the confirm compensation (salary, bonuses and special expenses, and cash dividends) are not inclined to issuance of uncertain compensation (stock dividends and employee stock options), motivation incentives, the better the firm’s future performance. In addition, Taiwan''s electronics industry in the depression era, to give senior managers to determine the confirm compensation (salary and cash dividends) to the higher, the better the firm’s future performance; other non-electronic industry in Taiwan in the depression era, offered to executive compensation structure of cash dividends, the higher the better performance of the firm’s future performance. Finally, when in a different life cycle stages in the depression era, the growing stage companies attached more importance to the structure of the payment of cash dividends, the firm’s future performance is better. In addition, when the enterprises to enter the mature stage, are not inclined to the issuance of stock dividends on the firm’s future performance is better. Finally, when the company entered into a recession phase, is not inclined to the payment of cash dividends, the firm’s future performance better. The results of this study can be used as the company''s remuneration committee to formulate the basis for executive compensation, and decision-making judged by reference to any other interested person.