Top-Management Compensation and R&D Expenditures－the Moderating Effect of Business Life Cycle

Autor: Hsin-Yi Liu, 劉欣怡
Rok vydání: 2017
Druh dokumentu: 學位論文 ; thesis
Popis: 105
This study uses the sample of firms listed in Taiwan Electrics Industry. The purpose of this study is mainly to examine the impact of changes in R&D expenditures on changes in top management’s compensation when the firm faces a small earnings decline or a small loss in different life cycles. At first, this study expects that changes in R&D spending are more strongly negatively associated with changes in top management’s compensation. Furthermore, this study expects that changes in R&D spending are more strongly positively associated with changes in top management’s compensation when the firm faces a small earnings decline or a small loss. Finally, the relationship between changes in R&D spending and changes in top management’s compensation is considered when the firm faces a small earnings decline or a small loss in different life cycles. The empirical results show that changes in R&D spending are more strongly negatively associated with changes in top management’s compensation. Moreover, there is no significant relationship between changes in R&D spending and changes in top management’s compensation when the firm faces a small earnings decline or a small loss. Therefore, this study further tests the relationship between changes in R&D spending and changes in top management’s compensation when the firm faces a small earnings decline or a small loss in different life cycles. The result finds that there is a significant positive relationship between changes in R&D spending and changes in top management’s compensation when the firm faces a small earnings decline or a small loss in the growth stage. This implies that the firm will strengthen the behavior of the compensation to prevent top managers’ speculation in the growth stage.
Databáze: Networked Digital Library of Theses & Dissertations
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