Research On The Implementation Effect Of Dongfang Shenghong Employee Stock Ownership Plan Under The Background Of Mixed Ownership Reform

The "Certain Guiding Opinions on Deepening Mixed Ownership Reform" was officially released in 2018,which highlighted the status of employee share ownership in SOE reform and guided SOEs to respond positively.In the wake of this,the domestic capital market has become increasingly active and employee share ownership plans have been favoured by more companies.However,it has not been long since the relaunch of the new employee share ownership scheme and fewer companies have actually completed a round of employee share ownership,making the road to further deepening mixed ownership reform and promoting the sound development of SOEs increasingly tortuous.Therefore,an in-depth discussion of the motivations and effects of employee share ownership schemes in enterprises is of great practical and theoretical importance.Based on the above background,this thesis selects Jiangsu Province’s pilot hybrid reform enterprise,Orient Shenghong,as a model benchmark for hybrid reform of state-owned enterprises in Jiangsu,which has successfully implemented a two-step hybrid reform by introducing non-public capital through asset restructuring to complete the first step of the hybrid reform and implementing an employee share ownership scheme to further deepen the enterprise’s hybrid reform,as typical.This thesis summarises the existing domestic and international perspectives through the literature research method,and uses the case study method to analyse the entire process of implementing an employee share ownership scheme in Orient Shenyang.On this basis,it explores the reasons behind the case company’s choice to promote its employee share ownership scheme,and elaborates on the implementation plan and process of its employee share ownership scheme,followed by an analysis of Orient Shenyang’s share ownership scheme based on the event study method and financial indicators.This is followed by a further study of the effects of the share ownership scheme on the company based on event-based research and analysis of financial indicators.From this study,it can be concluded that the domestic market has responded positively to the implementation of an employee share ownership scheme in both the short and long term,based on capital market reactions.Based on governance effects,the implementation of the Employee Share Ownership Plan has resulted in a diversified shareholding structure,which has mitigated the governance risk of one share in Orient Shenyang,effectively reduced agency costs,improved internal governance efficiency and further deepened the mixed ownership reform.Based on the financial effects,the financial indicators of Orient Shenyang after the implementation of the Employee Stock Ownership Plan have shown a relatively good development trend,and the growth of Orient Shenyang is still at a relatively strong level at a time when industry competition is intensifying and the performance of many companies is declining.Overall,the employee share ownership scheme has an important role to play in the promotion of mixed ownership reform in state-owned enterprises,and only by developing a reasonable implementation plan at the right time can companies maximise the impact of the employee share ownership scheme and achieve further corporate growth.