Change in Spending Pattern of Employee Before Bonus, after Receipt of Bonus as Compare to Normal Times

10 Pages Posted: 30 Aug 2013

See all articles by Vishvesh H. Raval

Vishvesh H. Raval

Vinimay Securities

Khyati Vyas

Rofel Arts and Commerce College

Date Written: August 12, 2013

Abstract

India has been one of the fastest emerging markets in the world and Employees rightfully are one of the most important resources of economy. It is imperative that corporate pay due respect to Human Resources’ and keep them motivated for mutual benefits. There are numerous incentives and perks being offered to attract and retain best talent. Bonus payment is one of the most prevalent incentives offered as part of remuneration often. Though Bonus is part of statutory payment to be made to employees according to Indian laws it is paid annually at a festive time of Divali. This payment, though part of salary, comes over regular salary; adding to additional liquidity at a time when there is tendency to spend due to festive mood. We decided that an attempt should be made to examine how, additional liquidity, changes spending pattern of employees. Three time frames were taken one before bonus receipt, second soon after receipt of bonus money and third one month after bonus receipt. Change here means either improvement from before or deterioration from previous level. Employee sample of 30 was selected comprising of 15 male employees and 15 female employees. All employees were at least 18 years of age and in continuous employment of 12 months or more, with one employer. Employees pursued different jobs e.g. Manufacturing, trading, services etc. on full time basis. Employees belonged to Vapi, Navsari, Vadodara and Ahmedabad. It was observed that Employees’ score do show significant relationship with receipt of bonus money. Scores are Gender independent.

Keywords: Behavioural Finance, Psychology

JEL Classification: D10, D23, D31, D33, D70, E20, E21, E60, H24, H31, J24, J28, J31, M52, R23

Suggested Citation

Raval, Vishvesh H. and Vyas, Khyati, Change in Spending Pattern of Employee Before Bonus, after Receipt of Bonus as Compare to Normal Times (August 12, 2013). Available at SSRN: https://ssrn.com/abstract=2308886 or http://dx.doi.org/10.2139/ssrn.2308886

Vishvesh H. Raval (Contact Author)

Vinimay Securities ( email )

404 Pushpakunj
Apollo Compound
Vadodara, Gujarat 390002
India

Khyati Vyas

Rofel Arts and Commerce College ( email )

Vapi Namdha Road
PO-67
Vapi, Gujarat 396191
India

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