Study On The Improvement Result Of Financial Situation Effected By The Employ Stock Ownership Plan

ESOP originated in the United States， more and more scholars and trepreneursbelieve that the implementation of an ESOP can mobilize the enthusiasm of the staff,the formation of employee self-incentive, enabling to overcome the crisis and improvethe financial situation of enterprises. In china， employee stock ownership planoriginated in Taizhou, Wenzhou and other places of business restructuring in the1980s. ESOP twists and turns in our country, even once ordered a halt. In august2012, the government promulgated "listed companies ESOP Interim Measures"(draft),which indicates that those who ESOP will restart in China’s capital market. However,whether ESOPs can have a positive impact on the financial position of the enterprise?How does the ESOP work in financial position of the enterprise mechanism? In ESOPdesign how to motivate extent? These issues remain to be studied. In this context ofthis article, along previous studies, we do further research and expansion. Firstly,combing the basis theoretical of the relevant ESOP, while describing accountingstandard for employee stock ownership plan, and did the corresponding financialanalysis, including the impact on financial indicators, capital structure and cost ofcapital; secondly, constructing game model to analyze the ESOP impact on thefinancial situation of enterprises mechanism, discovered the relationship between theemployee stock ownership plan and financial situation. Finally, selecting the listedcompanies of Shanghai and Shenzhen stock market, which implement ESOP, and thecross-section data in2012, and by building a multiple regression model to verify theeffect of employee stock ownership plans to improve the financial situation.Theresults showed that ESOP companies Altman Z value and there is no significantcorrelation level, it cannot play a positive role in the inhibition of the company onlong-term risk, and even have a negative effect; employee stock ownership has apositive impact on the company’s income level and executives holding better thanordinary ESOP effect; ESOP can improve the company’s capital structure andfinancing channels, thus contributing to asset-liability ratio dropped; management offixed remuneration and agency costs negatively correlated; stake management onagency costs have inhibited the negative correlation between the process and can imp-rove the company’s financial performance.