Corporate Governance, Professional Education, and Employee Bonus in High-Tech Industry- Evidence from Taiwan

Abstract

High-tech industry plays the role of motivator in the economic development in Taiwan, revealing that high-tech industry is not simply the most important breadwinner in Taiwan, but also the powerful backing of national competitive advantage under the globally competitive system. High-tech industry requires the engagement of excellent talents, but the staff turnover rate is commonly high. A lot of businesses therefore apply employee bonus and the high development of high-tech industry as the incentives to recruit and retain talents. In this case, it is important for high-tech industry understanding the factor in employee bonus and further discussing the relationship among current corporate governance mechanism, professional education, and employee bonus for the sustainable development. Taking domestic listed high-tech companies as the research objects, the database of Taiwan Economic Journal and Taiwan Patent Gazette are the data sources to collect the companies’ financial statement, patent, and stock price data for the empirical research. The research results conclude the significantly positive correlations between 1) corporate governance and employee bonus, 2) professional education and corporate governance, and 3) professional education and employee bonus. Finally, conclusion and suggestions are proposed, expecting to assist high-tech businesses in promoting the employee bonus system.