Motivation And Performance Analysis Of Employee Stock Ownership Plan

Employee stock ownership plan is refers to the enterprise employees through loans or cash or other ways to hold shares of the enterprise,anarrangement that will make employees with double identity of workers and owners involve in enterprise managemen.Employee holdings rose in the United States in the 1960 s,and its original intention is to improve the traditional labor employment relationship in the context of the rapid development of shareholding system.In the traditional employment relationship,the workers do not have ownership of the enterprise,so it is difficult to give full play to their creativity and enthusiasm.And the employee stock ownership plan can insist on the private ownership of the means of production and free market economy conditions to change the traditional employment relationship,so that workers have a certain ownership of the enterprise,so as to better mobilize the enthusiasm of workers to create more value for the enterprise.Since the 1980 s,with the shareholding reform of state-owned enterprises,our country has carried on the exploration and the practice to the employee stock ownership plan from the theory and the practice.However,due to the lack of effective norms,the state-owned enterprises that carry out the ESOP often allocate the assets to the operators and workers for free,resulting in the loss of state-owned assets.At the same time,this kind of institutional arrangement,which belongs to the nature of welfare,weakens the function of the staff to participate in the management and decision-making.After the implementation of the company law,the Commission issued a notice on 1998,announced the cessation of the issuance of internal staff shares and employee stock.From 2013 to 2014,the Party Central Committee and the State Council issued "on the listed company ESOP pilot guidance" and other policies and regulations,allowing for employee stock ownership plan in accordance with the conditions of enterprises,changing the income distribution mechanism,promote the fair distribution of the market economy healthy and stable development and social wealth,the income of workers and enterprises development are closely linked,so that workers can share the fruits of reform and development.The Party Central Committee and the State Council attach great importance to the development of employee stock ownership plans,and have encouraged and promoted the implementation of employee stock ownership plans of hundreds of listed companies.Before the implementation of ESOP,Hepalink company is facing the raw material market competition,industry leading position is challenged and many other difficulties.In this context,Hepalink company began to implement the ESOP.As a leader in the field of biopharmaceuticals,Hepalink company is also the first listed company that announced the implementation of the ESOP after the "guidance" released,the motivation of the ESOP and its impact on the performance of the company is worth our analysis.The company has a typical case analysis.In this paper,the case study method is used to study the motivation and performance of the employee stock ownership plan in Hepalink in six parts.The first part is the introduction,introduces the research background and research significance of the article,and reviews the research literature at home and abroad according to different viewpoints,and expounds the research ideas and methods of this paper.The second part is the theory of employee stock ownership plan,elaborated the meaning of staff holding plan,implementation steps and implementation methods.And compared with the long-term incentive model of stock option and virtual stock,in contrast,the ESOP is widely used and can realize long-term incentive to avoid the losses of short-term behavior of company managers.The third part introduces the company's ESOP in detail,and introduces the basic situation of the company combined with the introduction of the background of the implementation of the ESOP,and elaborated the staff holdings of the company's holders,Stock sources,duration and lock-up period.The fourth part focuses on the internal and external factors,analyzes the agent of the plan from the heparin products market,exchange rate fluctuations,the relevant policies and regulations,enhance the competitiveness of the company and the construction of long-term effective incentive mechanism,which is the important research content in this paper,which has laid theoretical foundation for the case analysis.The fifth part analyzes the performance of the company's ESOP.Through the analysis of the indicators,we know that Hepalink's ESOP have had a positive and favorable impact on the company's financial indicators,non-financial indicators and wealth effects.The sixth part is a summary of the content of this article,and put forward their own views.Through the analysis of the implementation of the ESOP in this paper,the author thinks: First of all,the ESOP have improved the company's short-term profitability,optimized the company's financial structure,while created greater value for shareholders;In the implementation of the ESOP,we should avoid the high leverage risk of the source of funds.We should choose the appropriate timing of implementation,improve the "entry" and "exit" mechanism of the ESOP,and avoid the high degree of leverage of funding sources.