Employee Bonuses and Financial Performance in Tourism Industry: a Panel Quantile Regression Approach

10.6285/MIC.201809_7(2).0015

Liu, Shu-Bing；Shun-Jen Hsueh

employee bonuses ； financial performance ； tourism industry

管理資訊計算

7卷2期（2018 / 09 / 01）

185 - 197

英文

Employee attitudes, performance and behavior are particularly important in the tourism industry, because most of the related services are based on staff performance and face-to-face interactions with customers. This study thus examines whether paying bonuses can provide an incentive to motivate employees to make extra efforts that will then improve company performance. In view of the inconsistent empirical findings in the literature and the limitations of least squares regressions, this study adopts a quantile regression method that combines fixed effects models to address this gap in the literature and provide a different perspective with regard to the relationship between employee bonuses and financial performance. According to the empirical results, quantile regression can indeed overcome the problems of over- or underestimating that arise from least squares regression. For all quantiles this paper finds a uniformly significant positive relationship between employee bonuses and accounting measures of financial performance in the tourism industry.

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