Purpose In order to follow the international trend of increasing transparency in financial statements, Taiwan began to implement regulations on expensing employee bonuses in 2008, a process that involves the use of specific dates as the basis for issuing the bonuses but which may also have the...

This study constructs a real options model to evaluate franchise contracts that take into account a guaranteed profit offered by the franchisor to franchisees under a dynamic environment, as in the contract of 7-Eleven Convenient Stores in Taiwan. We derive closed-form solutions of contract...