Motivation And Performance Analysis Of Employee Stock Ownership Plan Of Listed Companies

Employee stock ownership plan refers to allowing employees to purchase a portion of the company’s equity as shareholders,establishing a mechanism for sharing benefits between employees and the company,stimulating employees’ work passion and potential,thereby improving the level of comprehensive governance and enhancing the value of the enterprise.With the continuous development of China’s economy and the need for reform,the China Securities Regulatory Commission issued the "Guiding Opinions on the Pilot Implementation of Employee Stock Ownership Plan for Listed Companies" in June 2014,marking the restart of the employee stock ownership plan system for listed companies in China.The State Council also issued the "13th Five Year Plan for Energy Conservation and Emission Reduction Comprehensive Work" on January 5,2017,clarifying the goal of building a resource-saving and environmentally friendly society.The coating industry is a low-end manufacturing industry in the chemical industry and a perfect competition market due to its low technological content.The transformation requirements of environmental protection policies for coatings industry products are pressing enterprises to enhance their R&D and innovation capabilities,transform their products towards mid to high end quality,and seize market share as soon as possible.Under this background,this paper selects the leading enterprise in the paint industry,Sankeshu Paint Co.,Ltd.,the first private paint enterprise successfully listed in China,to carry out in-depth analysis of its employee stock ownership plan by using the literature research method,case study method,index analysis method,entropy method and event study method.Through analysis,it was found that Sankeshu,based on external factors such as macro policy support,industry transformation and competition,as well as human capital needs,and internal development needs such as improving comprehensive governance level,has successively launched five employee stock ownership plans over the past three years.The design of each plan is reasonable,with both graded subscription shares and guaranteed annual returns.The welfare coverage is wide,which is in line with long-term incentive goals.Then,the performance logic of "talent professionalism innovation agency issues comprehensive corporate governance capabilities enterprise value" was sorted out.Firstly,the employee stock ownership plan enriches the existing salary performance system of the enterprise,improves the level of employee structure,and enhances the attractiveness of the enterprise to high-quality talents;Secondly,the comprehensive governance level of enterprises continues to improve,alleviating the problem of agency and improving their research and development innovation capabilities;In addition,the scale of the company’s operating revenue continues to grow,and its market share continues to increase.The comprehensive performance indicator evaluation system constructed through the entropy method also proves that the financial performance of Sankeshu during this period was higher than the average in the same industry.Finally,the event study method is used to calculate the CAR value of short-term announcement effect and the BHAR value of long-term market performance,which shows that the employee stock ownership plan of Sankeshu has brought positive short-term and long-term market effects and effectively improved the market value of enterprises.However,through analysis,it was also found that Sankeshu has problems such as high debt ratio and difficulty in collecting accounts receivable.Therefore,this article proposes suggestions: on the one hand,it is necessary to continue to improve the design of the employee stock ownership plan,enhance the long-term incentive effect of the plan,and on the other hand,it is necessary to prioritize business risks in rapid development,reduce excessive dependence on a single industry,transform business models,and reduce liquidity risks.This article adopts a case study approach and selects representative three trees as the research object.It not only enriches the mechanism of the impact of employee stock ownership plans on enterprise value,but also provides case support for other enterprises that want to implement employee stock ownership plans,which has practical significance.