The Development Of Employee Stock Ownerships In China

The employee stock ownership is a kind of stock ownership incentive system that most of employees own the shares of the enterprise who work in through some patterns, and share the surplus profits of the enterprise, participate the operation and management of the enterprise in a certain way, and can withdraw from it under some conditions. This dissertation studies the theories, practices, and development directions of employee stock ownership in China on the basis of drawing lessons from the theories and practical operations of employee stock ownership in the Western countries. There are nine chapters in the dissertation.The process of emergence and development of employee stock ownership in China is discussed in Chapter 1. The employee stock ownership of China develops basically along two ways: one is the development of employee stock ownership in worker share system enterprises, we called it as the Share Cooperative System, in which shares are mainly controlled by workers; another is the development of the internal worker stock ownership in sharing corporations. The Share Cooperative System emerged in rural township enterprises in the early of 1980s, and spread into cities in the mid of 1990s being used to change the system of small and medium sized state-owned enterprises. The employee stock ownership was explored initially in sharing corporations in the mid of 1980s, which experienced several stages: the internal worker share, the corporate worker share, the employee stock ownership that their shares are mainly held by employee share holding councils. Theemployee stock ownership in China has its own characteristics.The histories of employee stock ownerships of China and the Western countries are examined in Chapter 2. Great Utopian socialist Charles Fourier proposed the setting up of phalansteres, or cooperative communities, 170 years ago, he thought that it is an organizational form to reform the traditional society, which included the initial elements of the worker ownership enterprises. The Ex-Yugoslavia ever advocated and promoted the Society Ownership, and it was famous and unique for its autonomy that workers governed the enterprises themselves. However, since the society ownership excluding the individual ownership of workers, lacking the ownership arrangements of worker ownership enterprises, it dismissed finally. Therefore, it can be seen as a counter-evidence for employee stock ownerships. The Employee Stock Ownership Plans (ESOPs) of the United States is the typical model of the development of employee stock ownerships. The scale and performance of the United States are evaluated highly and is the example to be learnt and imitated by many countries. The Worker Cooperative Complex of Mondragon in Spain emerged in 1950s as a form of worker ownership corporation, not only has its unique internal structure, but also its great success has impacts on ESOPs of the United States. In addition, the employee stock ownerships also develop well in the U.K., France, Japan and other countries. The history of employee stock ownership in China can be traced back to the Labor Share System of Shanxi Banking Institutes in the mid and late of Manchu Dynasty. In 1930s, the employee stock ownership was practiced in the Tianjin East Asia Wool Textile Co., Ltd. in the form of employee shareholders. The Entry-level Cooperatives of the new China can be seen as the earliest attempt of socialist employee stock ownership.The developments and changes of employee stock ownership's theories of China and the Western countries are reviewed in Chapter 3. The Western employee stock ownerships emerged in the United States firstly; as a result the theoretical research is relatively concentrated in the United States. Examining the changes of employee stock ownership theories historically, taking the mid of 1990s as the boundary, they can be divided into two stages: before that, the employee stockownership theories basically take the employee stock ownership as a kind of system arrangement to overcome the shortcomings existing in the capit...