The Effect of Restricted Stocks on Firm Performances and Risks

• Main Authors: CHANG,YU-CHIN, 張裕勤
• Other Authors: LIN,YAN-TING
• Format: Others
• Language: zh-TW
• Published: 2017
• Online Access: http://ndltd.ncl.edu.tw/handle/23235075676816426654

碩士 === 輔仁大學 === 會計學系碩士班 === 105 === This study aims to investigate the effect of restricted stocks on firm performances and risks. The sample consists of the firms in the electronic industry of Taiwan from 2011 to 2015. Our data is retrieved from the Taiwan Economic Journal Database (TEJ). On the one hand, the empirical results show that the granted restricted stocks exhibit a significantly positive influence on firm performance. On the other hand, restricted stocks exhibit insignificant effect on firm risk. The results suggest that the grant of restricted stocks could provide a positive incentive to employees to increase firm performances but not to increase firm risk. Moreover, EPS and ROA are also used as measurements of firm performance, and the empirical results are robust. Furthermore, this study also tests the influence of restricted stocks on subsequent EPS, ROA, and firm risk. The empirical results show that the grant of restricted stocks contributes to the performance of subsequent one-year, but makes no contribution to the performance of subsequent two-year. This evidence suggests that the incentive provided by restricted stocks only persists for one year. In addition, the grant of restricted stocks will also not affect future firm risk.