Employee Stock Ownership Plan And Firm Performance

In June 20,2014,The Commission issued ESOP guidance,after the policy issued,hundreds of enterprises to try to implement ESOP.As a new public view,ESOP on the stage of history once again.At present,it remains contradiction of ESOP.This paper analyzes the impact of how the plan influences financial performance and market performance.Based on the shared capital theory,property right theory,human capital theory,principal-agent theory and the research results of experts and scholars at home and abroad,this paper analyzes the impact of the implementation of employee shareholding plan on enterprise market performance and financial performance,and analyzes the relationship between general employee subscription ratio,executive subscription ratio and enterprise market performance and financial performance.And these data are used as research samples that China A shares listed companies implements the employee's shareholding plan between June 30,2014 and December 31,2015.Through the study found:(1)Implementation of employee stock ownership plan have a positive impact to the enterprise market performance and financial performance;(2)In the implementation announcement,the increase in the size of ordinary employees significantly improved the enterprise market performance and financial performance.(3)Executive subscription size haves a negative impact to the enterprise market performance and financial performance.This paper uses Tobin'Q to measure market performance and ROE to measure financial performance to study its relationship between the implementation of employee stock ownership plan,the proportion of ordinary employees holdings and the proportion of executives holdings and enrich the existing research perspective and research results.The above research results show that the implementation of employee stock ownership plan have a positive impact to market performance and financial performance,but the difference of employee subscription proportion have a significant impact to corporate performance that can not be ignored.The main contribution of this paper is that reveal the relationship between employee stock ownership plan,employee subscription structure and performance of market and financial.In recent years,a large number of literatures have examined the effect of the reaction of market performance and financial performance in the listed companies of implemented the employee holding plan.But it ignores the differences in corporate performance and financial performance resulting from the release of employee stock structure.Therefore,the research of this paper will help us to in depth understand the relationship between employee stock ownership plan and performance of market and financial.And it adds to the factors that focus on employee stock structure when the company issues an employee holding plan and enriched the research results of our staff holding plan.