Listed Company Earning Stock Ownership Plan Research

In 2014 a new round of state-owned enterprises reform is being vigorously started. Stated-owned assets supervision and administration commission of the state council comprehensively deepen the reform of mixed ownership, including guidance on the consideration of mixed ownership enterprises employee shareholding pilot, the publication of the guidance means the ESOP will combine mixed ownership reform pilot in the enterprise.This paper mainly studies the ESOP which brings the role and benefits to the enterprise. Based on the domestic and foreign literature review, theoretical basis and background of the mixed ownership compare with the foreign ESOP development pattern, analysis the current implement status about that plan, specific steps and motivation. Since 2014 ESOP proposed reform of state-owned enterprises, there are 453 listed companies to respond positively to the policy and started a pilot conducted ESOP as of February 29,2016. There are five stages in the implementation process:the board plans, the shareholders’ meeting, the implementation, stop the implementation, not pass. Concrete analysis the reason why some corporate choose to continue, the other give up.Liquor-making industry is a typical representative which is conformed to mixed ownership reform. Along with the national policy for the tight control of public consumption, liquor sales entering the adjustment into the trough since 2013. Combine with the current policy and development of the company, as the first liquor-making industry to implement ESOP listed companies, LAOBAIGAN existing performance decline, asset-liability ratio increased significantly higher than the same industry level, and other issues. By mixing ownership reform, the method of non-public offering of shares motivate employees, employees hold company stock to share the company’s profits, at the same time introducing strategic investment partners to enhance the vitality of enterprises and financial strength. In this paper, by the method of case study discussion, analysis HENGSHUI LAOBAIGAN implementation of ESOP reasons purpose, specifically how to implement, content implementation, the impact of ESOP financial condition, results of operations and corporate governance.Through analysis, before and after comparison ESOP found that implementation of the plan on the financial indicators of the company’s stock price movement, promoted the performance of the company, that the implementation of ESOP can produce a positive impact on the income level of the company, ESOP company’s capital to become operational measures to recapitalize state-owned enterprises, reduce the debt ratio, while saving cash flows broaden the financing channels, is a double incentive system optimization. Implementation summary LAOBAIGAN’s ESOP effect on other companies in the same industry, and it is suitable for mixed ownership reform plan proposed by the government, an effective solution to make the purpose of reform. Meanwhile, summarize the advantages and challenges of ESOP and give some advice.