Is Employee Compensation Related to Firms’ Operating Performance and Market Performance?

• Main Authors: YU-HSIANG CHIN, 金宇祥
• Other Authors: Tsun-Siou Lee
• Format: Others
• Language: zh-TW
• Published: 2016
• Online Access: http://ndltd.ncl.edu.tw/handle/45706156657709657266

碩士 === 國立臺灣大學 === 財務金融學研究所 === 105 === This paper uses both accounting and market indexes to measure firms’ performance and study whether rank- and-file employee compensation has positive and time lag effect to performance. After considering heteroscedasticity、serial correlation and cross sectional dependence, no evidence shows there is a relationship between rank- and-file employee compensation and firms’ performance in accounting measurement. However, in the market indexes measurement, whether dealing with related statistic issues or not, evidence shows rank- and-file employee compensation has positive and time lag effect to performance. Shareholder should pay more attention to market indexes rather than accounting indexes because market indexes imply both future expectation and wealth of shareholder, while accounting does not. So raising rank- and-file employee compensation can improve value of firm and shareholders’ wealth, making a win-win situation.