Wen‐Chung Guo, Shin‐Rong Shiah‐Hou and Yu‐Wen Yang
The main purpose of this paper is to investigate the relative firms’ performances of equity‐based compensation schemes using a panel regression approach from Taiwanese experience.
Abstract
Purpose
The main purpose of this paper is to investigate the relative firms’ performances of equity‐based compensation schemes using a panel regression approach from Taiwanese experience.
Design/methodology/approach
Previous theory considers executive stock options as an important input in the production process, but the empirical support for the performances of equity‐based compensation schemes is mixed in developed countries. This paper uses a panel data regression to analyze the influence of stock bonus and executive stock option on performance.
Findings
The evidences in Taiwan suggest that there exist positive associations between the amount of stock bonuses and firms’ operating performance. It is also found that firms with larger firm size or high growth opportunity tend to adopt stock bonus
Research limitations/implications
The first limitation is that we the dataset over our sample period 1999‐2001 is still incomplete because the executive stock options allowed by the regulation are not prevalent in Taiwan over that period. The second limitation is the unique stock bonus system in Taiwan is not observed for developed countries.
Practical implications
The result imply a positive association between stock bonus and firm's operating performance. Companies with well‐designed bonus compensation may lead to better performance.
Originality/value
The unique stock bonus compensation schemes in Taiwan are used in general to contribute to the success of the high‐tech companies. This paper first addresses the importance of the stock bonus on compensation issue for high‐tech companies. This added knowledge is beneficial to practitioners and academics whose interest lies in equity‐based compensation and performance.
Details
Keywords
Yi-Ying Chang, Che-Yuan Chang and Chung-Wen Chen
The purpose of this paper is to examine how transformational leadership may relate to corporate entrepreneurship by adopting a multilevel approach. The authors also theorized and…
Abstract
Purpose
The purpose of this paper is to examine how transformational leadership may relate to corporate entrepreneurship by adopting a multilevel approach. The authors also theorized and tested the top-down and bottom-up intermediate process linking transformational leadership and corporate entrepreneurship.
Design/methodology/approach
Multisource data across different timeframes were collected from 129 managers and 244 employees from 55 units of 27 firms.
Findings
The results showed that transformational leadership and corporate entrepreneurship were positively related at the unit level. Furthermore, unit-level collective efficacy mediated the relationship between unit-level transformational leadership and unit-level corporate entrepreneurship. The authors also found that the firm-level empowerment climate moderated the indirect effect of unit-level collective efficacy on the relationship between unit transformational leadership and unit-level corporate entrepreneurship.
Originality/value
First, the goal of this study is to extend the single focus of transformational leadership on corporate entrepreneurship (e.g. Ling et al., 2008) and develop a more thoughtful approach on determining how transformational leaders influence corporate entrepreneurship across levels. This study responds to calls for research to look at the impact of unit-level transformational leaders, such as middle managers, across levels (Ren and Guo, 2011) and creates a multilevel framework in which transformational leaders at the unit level influence the appearance of corporate entrepreneurship at the unit level.