An Empirical Study on Issues in taiwanese Employee Reward Plans

Wen-Hsiang Lin (), Po-Sheng Ko (), Hsueh Fang Chien () and Wen-Chih Lee ()
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Wen-Hsiang Lin: Department of Accounting, I-Shou University, Taiwan
Po-Sheng Ko: Department of Public Finance and Taxation, National Kaohsiung University of Applied Sciences, Taiwan
Hsueh Fang Chien: Department of Accounting, Soochow University, Taiwan
Wen-Chih Lee: National Kaohsiung University of Applied Sciences, Taiwan

Review of Pacific Basin Financial Markets and Policies (RPBFMP), 2010, vol. 13, issue 01, 45-69

Abstract: The human resources are the most important input for the enterprise, so the management of talents is necessary. Especially under level-management philosophy, the agency problem between owners and professional managers often influence the pursuit of enterprise's value maximization. Therefore, an effective rewarding system can make the agent bear some performance responsibility, and can lighten the idle duty problem. Based on this argument, first, this research examines the implementation of a reward plan with employees' bonus and employees' warrant, and whether it can improve the enterprises' performances and shareholder's value. Second, this research uses the Mishkin test (1983) to analyze whether the investors have rational pricing to employees' reward system.

Keywords: Employee bonus; employee stock option; rational pricing (search for similar items in EconPapers)
JEL-codes: G1 G2 G3 (search for similar items in EconPapers)
Date: 2010
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Citations: View citations in EconPapers (3)

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DOI: 10.1142/S021909151000186X

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