The effect of interest rate changes on stock market returns in Taiwan.

Abstract

In this study, I analyze the relationship between managerial compensation, corporate risk, and operating efficiency in Taiwan stock market-listed companies. There are three main aspects to this study. To begin with, we examined how different types of corporate risk can have different effects on top manager salaries. Additionally, we investigated whether management efficiency is associated with managerial compensation in Taiwan. In the last section, I examined the effect of firm size on the relationship between top-manager salaries, corporate risk, and operating efficiency. There is a striking difference between credit risk and other managerial compensation risks based on my findings. Furthermore, the moderating effect of firm size varies by factor. All my hypotheses were also supported by most estimated results. Subsequent explanations were provided. It is also important to note that the phenomenon found in this study has implications for the design of managerial compensation contracts.