Research On The Influence Of Employee Stock Ownership Contract Elements On Corporate Performance

In June 2014,China Securities Regulatory Commission launched the guidance of listed company's employee stock ownership plan,ESOP in China is carried out again.Guiding Opinions on the listed companies' ESOP have played an important role in the specification of making plans.In this article,starting from the perspective of employee shareholding contract elements,the author studied the effect of each factor on corporate performance.First of all,the author reviewed the development of employee stock ownership plan in China,and described the implementation status of the listed company's employee stock ownership plan,summarizing the characteristics of the implementation of this plan in China at present stage,and putting forward the existing problems.Second,the author used event study and financial index analysis method to analyze the effect of employee stock ownership plan,concluding that employee stock ownership plan after the announcement has made significant excess returns.However,after the implementation of this plan,the rate of return on total assets and net assets of listed companies failed to improve.The long-term effect of this plan is not obvious.So,the reason that made this outcome should be researched from the angle of plan itself.In the next stage,the author researched how employee ownership plan elements influenced the corporate performance.Third,the author established the multivariate linear regression model to study how the employee shareholding elements of contract affects company short-term performance and long-term performance,finding that Stock source adopted by non-public method can significantly improve performance,Shareholders' funds support is positive for short-term performance,but there is a negative correlation of long-term performance.Incentive intensity are positively correlated with both short-term and long-term performance.The more strict of making personnel selection criterion,the more corporate performance is improved.According to the results of empirical analysis,the author finally put forward suggestions from the angles of government and the elements of employee stock ownership paln,in order to optimize the employee-owned contract and improve corporate performance.