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The Empirical Study On The Effect Of Employee Stock Ownership Plan

Posted on:2018-07-16Degree:MasterType:Thesis
Country:ChinaCandidate:C B WuFull Text:PDF
GTID:2359330512995795Subject:Finance
Abstract/Summary:PDF Full Text Request
Employee stock ownership plan is a special form of motivating employees.Employee holding company shares can further enhance employee's sense of belonging,promote employee's enthusiasm and form the benefit-sharing mechanism between employees and enterprises.Therefore,Western companies commonly used in employee motivation.From the 1980s China began the implementation of the employee stock ownership plan.In June 2014 the CSRC promulgated the "listed companies on the implementation of the employee stock ownership plan guidance",re-allow listed companies implement employee stock ownership plan.The effect of ESOP has been controversial in academic circles.The existing research shows that there are positive,negative,irrelevant and nonlinear correlations between ESOPs to firm performance.China's employee stock ownership plan implementation time is relatively late,the cycle is shorter,and the purpose background,the mechanism design is different with foreign countries.Whether the employee stock ownership plan has an impact on the performance of listed companies in China,what is the impact mechanism,and what are the differences in employee stock ownership plans with different characteristics?In this paper,through the theoretical analysis and empirical research approach,we study the impact of performance and market response to the implementation of the ESOP.First of all,we selects the A-share listed companies that implement the ESOP from 2014 to 2015 as sample,and adopts the Propensity Score Matching(PSM)to overcome the sample selection bias and small sample bias.By comparing the difference between the treatment group and control group,we confirm the positive impact of the ESOP on the listed companies.Second,we construct labor productivity,investment expenditure and agency cost to study micro mechanism.The results show that the ESOP can improve the labor productivity and reduce the investment cost of the company,but no significant impact on the agency cost.Third,we analyze the impact of different types of employee stock ownership programs;Finally,we use the event research method to test the impact of the market response to employee stock ownership plans.In this paper,we not only enrich the research of employee stock ownership plan,but also help the listed companies design incentive compatible employee stock ownership plan,exert the positive effect of employee stock ownership plan,and more importantly,we provide relevant theoretical reference and useful empirical evidence to the Chinese mixed ownership reform.
Keywords/Search Tags:Employee Stock Ownership Plan, Corporate Performance, Propensity Score Matching Analysis
PDF Full Text Request
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