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Profit Sharing plans and Employee Productivity¬°GEmpirical Evidence from Taiwan Securities Industry

This paper uses a sample of listed and unlisted securities companies in Taiwan to investigate the effects of employee productivity. The empirical estimation is based on a modified Cobb-Douglas production function.
To provide a preliminary account of how the securities firms use the group incentive system and if the system certainly works as well as other companies on productivity effects, this paper examines the productivity effects via pooling the financial data during 1997-2000, the dataset is constructed of 132 securities firms.
In addition, to estimate the incentive effects from the bonus, a number of independent variables are included in this study, such as profit-sharing dummy variables, amount of distributed shares, stock price and the ratio of profit sharing to net-profit. Moreover, the study also adds the ratio of profit sharing to wage to explore that if the wage risk could reduce the effects of employee productivity.
The result indicates that firms with stock bonus will perform better than others, it apparently shows on listed companies, and the stock price is a key factor. Further, this study also finds that increasing the ratio of cash bonus to wage or to net-profit, it would significantly reduce employee productivity, especially on unlisted companies, and the stock bonus is contrary to the cash bonus.
Date28 August 2003
CreatorsLin, Ming-Fen
ContributorsNien-Chi Liu, Shun-Jer Chen, Ping-Lung Hsin
Source SetsNSYSU Electronic Thesis and Dissertation Archive
Detected LanguageEnglish
Rightsunrestricted, Copyright information available at source archive

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