In response to the expenditure impact of employee bonus shares and firms' needs to recruit and keep talent, the Taiwan government approved the issuance of restricted stock as company compensation in 2011. This research thus examines publicly-listed companies that adopted restricted stock awards (RSA) in Taiwan from July 2011 to the end of 2016. In accordance with the signaling hypothesis, we investigate how investors react to the RSA a firm offers, as well as whether the information provided in the announcement period differs from that during the exercise period. The results indicate that the announcement and exercise periods both exhibit no significantly positive cumulative abnormal returns. However, larger and more significant cumulative abnormal returns arise for firms with a larger announcement size, for the period during initial announcement, and firms with a higher percentage of restricted stocks being exercised.