The Empirical Study Of Employee Stock Ownership Plan Impact On Corporate Performance

Employee stock ownership plan(ESOP)originated in the United States,and obtained the rapid development.But the ESOP in China's development is not satisfactory,even once have been stopped.June 2014,China issued "on the listed companies in the implementation of employee stock ownership plan pilot guidance",employee stock ownership plan in China's capital markets reopened.In nearly a year the employee stock ownership plan was significantly increased.The employee stock ownership plan is becoming a new way to explore the long-term incentive and the reform of the state-owned shares of the listing Corporation in China.However,there are still having differences in the understanding of employee stock ownership plan.Whether the employee stock ownership plan can have a positive impact on enterprise performance? Under the background of the reform of state-owned enterprises,what are the effects of employee stock ownership plan on the performance of state-owned enterprises? What is the relationship between employees' engagement and firm performance? How to affect the firm performance by employee self-raised proportion and shareholding ratio? These issues are still need to be studied.In order to answer the above questions,this article base the principal-agent theory,human capital theory and two-factor theory,then research and review the employee stock ownership plan how to affect the enterprise performance.On the basis of theoretical analysis,this article chooses 113 listed companies' cross section data during 2014-2015(including 34 state-owned enterprises and 78 non-state-owned enterprises)as the research sample.Empirical test of the impact for employee stock ownership on corporate performance,and compared the state-owned enterprises with non state-owned enterprises,then finally obtain the following conclusions:(1)Employee stock ownership plan is helpful for state-owned enterprises to establish modern enterprise system,clear property rights,enhance the level of corporate governance.In the context of the reform for state-owned enterprises,adopt employee stock ownership plan effectively to improve the firm performance.At the same time,higher employee engagement and employee self-raised ratio are more conducive to the improvement of corporate performance.The empirical test shows ESOP is more positive effect for state-owned listed companies.(2)Employee stock ownership plan established a staff sharing mechanisms that employee can join business decisions and benefit sharing.And in the future,the employee's income organically linked with corporation' stock value.For stock market,State-owned listed companies to implement employee stock ownership plan is a positive signal for the reform.Thus it will bring to the company's stock price to rise.At the same time,the comparison of the T+1,T+5,T+30,T+90 time period from the state-owned and non state-owned samples,it can be found that the impact of the state-owned listing Corporation in the short term is more obvious.The main purpose of opening the employee stock ownership in the state-owned listing Corporation is through the innovation of the securities market system and the management system,then to inject new impetus into the competitiveness.This paper analyses the effects for the employee stock ownership plan on the company's financial performance and shareholder's wealth performance.Then the employee stock ownership plan on corporate performance has positive effect,and the effect of state-owned listed companies is better than private enterprises.Therefore the state-owned listed companies in the implementation of the employee stock ownership plan should be according to the actual situation of the enterprise then appropriate to improve employee participation number,employee self-raised proportion and employee shareholding ratio.Integrate the company's interests and employees' interests that will greatest increase the employee work enthusiasm and the creativity,effectively improve the efficiency level of state-owned enterprises and market competitiveness.