ESOP And The Improvement Of Corporate Governance In Private Enterprises

As an innovative enterprise institution, ESOP has achieved a lot in practice. In this thesis, we discuss the relationship between ESOP and the evolution of private corporate governance, and emphasize on the problems as follows: Why is ESOP put into practice? What will the private enterprises benefit from the practice of ESOP? How can ESOP be improved in the private enterprises?Firstly, we interpret Human Capital Theory which is the theoretical basis of ESOP. Secondly, a model of the Enterprise Proprietorship is designed. According to the conclusion drawn from the model, we make an analysis on the evolution process of the proprietorship & residual controlling right of private enterprises:centralized symmetry------separation------decentralized symmetry, from which wedraw a conclusion that the process is an improving course. As one of the realization of decentralized symmetry, ESOP can theoretically improve the internal governance mechanism in private enterprises. On the basis of the above, we sum up three effects brought by ESOP, which attribute to the improvement of the internal governance mechanism in private enterprises, then provide two cases for empirical analysis. Finally, we give some advice on how to improve ESOP in private enterprises.