本篇論文主要著重於探討自由現金流量與經理人薪酬制度的關係。自由現金流量的代理問題通常比較有可能存在於高現金持有公司，給予經理人適當的權益薪酬不僅可將經理人與股東的利益趨於一致，亦可降低經理人風險趨避的問題。本研究希望能檢驗公司權益薪酬制度之特性對於購併後長短期績效之影響，更進一步加入併購溢酬一起討論，我們的研究結果指出給予經理人權益薪酬制度，可降低主併公司併購所付的溢酬，而主併公司若能降低所支付的併購溢酬，即可提高公司的併購績效。

Agency problem of free cash flow is more likely to exist in cash-rich firms. Granting executives equity-based compensation (EBC) could not only align interest between managers and shareholders but also avoid the managerial risk-taking problem. We employ both incentives to examine the impact on both short-term and long-term performance after mergers and acquisitions. We also add in premium into consideration in order to fully capture the relation between equity-based compensation and mergers and acquisitions. Our results indicate that EBC could reduce the premium paid by acquiring firm further increase the performance of mergers and acquisitions.

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