Empirical Study On The Impact Of Employee Stock Ownership On Enterprise Performance

China Securities Regulatory Commission issued “Guidance on Listed Companies ESOPs” in June 20,2014.Since the guidance published,a number of listed companies have introduced employee stock ownership plan,which makes the heat of ESOPs rising.However,based on a comprehensive study of the phenomenon at home and abroad,whether the ESOPs have marked influence on enterprise performance does not reach an unanimous conclusion.In this context,based on the theoretical research of the ESOPs,this article empirically studied the impact of the ESOPs on enterprise performance.The impact of ESOPs on enterprise performance is demonstrated by two parts which are market-based corporate performance and profit-based corporate performance.In this paper,market-based corporate performance is measured by stock price,profit-based corporate performance is measured by Return on Assets.In this paper,the event study method and linear regression are two main methods.Based on the sample data from listed frims since the CSRC issued the guidance in June 2014,empirical study are implemented in two parts,to test whether ESOPs have significant impacts on stock prices or ROA for the companies who carry out the ESOPs.Data sources for the article are listed company announcements and financial reports.Statistical software SPSS 22.0 is used to complete the processing and analysis of the data.The study found that ESOPs have significantly improved stock prices of listed companies,which means ESOPs have a significant positive impact on the market-based performance;ESOPs can significantly increase the ROA of listed companies,which means ESOPs have a significant positive impact on the profit-based performance,futher more,managerial ownership has better effect than general staff ownership.In this paper,based on verified data from listed frims since the CSRC issued the guidance in June 2014,there are some practical reference value.But there are also some shortages in the paper,such as small sample size,single index and no discussion of long-term effects.Future research can be done from several angles,in order to fully demonstrate the impact of ESOPs on firm performance,so as to provide reasonable evidences for corporate decision-making.