The Incentive Effects Of Esop Research-Based On Psychological Contract As Mediating Variable

Under the influence of economic globalization, market competition is increasingly intense. As the most significant enterprise capital, human capital has been becoming an important. In order to motivate employees, companies in China emulated the United States and other developed countries to imply the employee stock ownership plan (ESOP). Since then, studies on ESOP have been becoming the focus point in the areas of economics and management. There are lots of researches that paid attention to ESOP institution, legal system, comparison of different ESOP modes, and the change of enterprise performance before and after ESOP. However it is lack of the research on the incentive effect of it. This article mainly studies the mechanism of ESOP incentives, the impact factor, mediating variables.The employees are in accordance with the "Social Human" hypothesis. When they entered a company, not only a labor contract signed up but also the psychological contract came into being. Psychological contract is implicit, dynamic and subjective. Psychological contract violations will lead to labor turnover, decrease satisfaction, and reduce emotional commitment and so on. The degree of psychological contract fulfillment influences ESOP’s effect.The conceptual model and hypotheses are developed based on the existing literature about ESOP, psychological contract and motivation theory. And then the model is validated through the analysis of data collected from a survey website. This paper found that:(1) ESOP has a positive effect on motivation,(2) psychological has a positive effect on motivation,(3) ESOP has positive effect on psychological contract, and (4) psychological contract plays a mediating role in the relationship between ESOP and motivation.After proofing the theory hypotheses, the paper proposed four ideas for enterprise administration.(1) Use ESOP as a way to incentive their stuff.(2) Pay more attention on the psychological contract in the process of motivation.(3) Establish and improve the legal system for ESOP.(4) Imply diverse ESOP in different industries.