| Summary: | 碩士 === 銘傳大學 === 會計學系碩士班 === 100 === This study examines whether business financial performance and dividend distribution would simultaneously affect the employee bonus simultaneously. Although the conflict of interest between employee bonus and distributable earning might exist, it is still possible to get win-win result if the increment of employee bonus could enhance the earnings growth. With the data of listed companies of Taiwan TWSE/GTSM between 2005 and 2010, the Static Trade-off Theory is employed in this study.
The empirical result supports that there is a positive relationship between dividend paid and employee bonus, i.e., the higher the dividend is paid out, the lower the employee bonus is. Furthermore the impact of dividend distribution and employee bonus remains even after the deduction of employee bonus expenses. But the negative impact of dividend distribution and employee bonus is reduced. When current employee bonus falls below the long-term target employee bonus, it is could be the corporate will rise up its future employee bonus.
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