Analysis On The Motivation And Effect Of ESOP In State-owned Enterprises ——Taking Taiji Industry As An Example

In recent years,it has been one of the priorities of the Chinese government to encourage the conversion of state-owned companies,encourage the development of mixed-ownership economy and realize the state-owned companies transformation.The state has never stopped issuing relevant policy documents since 2013.As a breakthrough point of mixed reform and enterprise transformation and upgrading,ESOP is very important for enterprises to improve their equity structure,strengthen their governance ability,and improve the innovation ability and performance of state-owned enterprises.This paper takes Taiji Industry as a case study object to analyze and study,mainly explores the motivation of Taiji Industry's implementation of ESOP,the influence path of ESOP on enterprise operation and the final effect of ESOP on Taiji Industry.It provides references and suggestions for other state-owned companies in China to encourage the conversion of mixed ownership,promote the industrial transformation and improve the operating capacity of enterprises through the employee stock ownership plan.This paper first defines the definition and related contents of mixed ownership and ESOP,and analyzes the motivation of companies to implement ESOP based on principal-agent theory,two-factor theory,stakeholder theory and signal transmission theory.Secondly,this paper analyzes the current condition and problems of carry out a ESOP in state-owned companies from 2015 to 2021 based on the components of ESOP.Again,with Taiji industry as an example,this article about Taiji industrial company background,and Taiji industrial employee stock ownership plan introduces the specific content,combined with tai chi enterprise oneself circumstance after analyzes the reason of tai chi industry implements the employee stock ownership plan in the motivation to analyze the effect of Taiji industrial employee stock ownership plan specific path and its ultimate effect analysis and evaluation.Through analysis of definite cases of Taiji Industrial implementing ESOP,it is found that:First,there are six reasons for Taiji to implement the ESOP: promoting the mixed-ownership reform process,delivering the information of good operation to the market,reducing agency costs,improving the financial indicators of enterprise operation,attracting and motivating high-level scientific research talents,and promoting enterprise transformation.Second,the implementation of the employee stock ownership plan of Taiji Industry had the effect of mixed reform during the lock-up period,but after the lock-up period,a large number of employees chose to reduce their holdings,resulting in the effect of mixed reform not lasting.Third,it promoted the successful transformation of Taiji industry and made the business composition of the company more reasonable.Fourth,the stock market has shown a positive reaction to companies.Fifth,the income and profit indicators of enterprises have been improved to some extent.Sixth,the agency cost of enterprises also has a certain degree of reduction.Seventh,attracting and motivating highly educated scientific researchers is effectual.Finally,derived from the research on the status of ESOP's implement in state-owned enterprises,combined with relevant theories and the specific situation of Taiji industry,this paper puts forward targeted suggestions: First,enhance the sense of belonging of employees to alleviate the problem of the short time of employee ownership in Taijii industry.Second,the narrow scope of ESOP design can be solved by expanding and optimizing the selection range of incentive objects.Third,the problem that participating in ESOP brings financial pressure to participants can be solved by means of abundant capital sources.Fourthly,the policies and regulations of ESOP should be improved due to the lack of formal national regulations.