The Effects Of Employee Stock Ownership Plan On Enterprise Performance And Employee Behavior

In June 2014,China Securities Regulatory Commission(CSRC)issued the “Guiding Opinions on Pilot Implementation of Employee Stock Ownership Plan of Listed Companies”.This issuance provides institutional guarantee for listed companies to conduct their employee stock ownership plan(ESOP)and imposes in a formal and legal manner some requirements on such plan.Since June 2014,companies all over China have made corresponding measures to vigorously adopt the ESOP.Therefore,it is of great significance to study the ESOP and its impact on the reforms of the mixownership in China.This thesis,taking Kunming Yunnei Power Co.,Ltd.as the research object,focuses on the changes of companies after they have carried out the ESOP.The author of this paper adopts case study method rather than analyses the empirical evidence,and targets the Kunming Yunnei Power Co.,Ltd.as the research object.Firstly,the introduction of related theories and concepts as well as the development status of the ESOP is given.The similarities of and the disparities between the incentive stock option and the employee stock ownership are also shown to explain the prioritized applicability of the latter in the SOE mix-ownership reforms.Besides,the paper describes in detail the ESOP in Kunming Yunnei Power Co.,Ltd.,the design mechanism and the characteristics of the plan.Moreover,an assessment of the conditions after the company has conducted the ESOP is made by studying the changes of the market performance,of the balanced scorecard with four perspectives and of the ownership structure since the implementation of the ESOP.According to this research,the author of this paper gets conclusion: First,the shortterm market reflection has been improved since the implementation of the ESOP.Second,companies have been bettered in four aspects of the balanced score card since the implementation of the ESOP.Finally,no loss of national assets has been caused by the changes of the ownership structure since the implementation of the ESOP.Through careful analysis,the author of this thesis believes that the ESOP in Kunming Yunnei Power Co.,Ltd.is conducive to the enterprise in terms of the market reaction and the financial performance which are the most two significant aspects of the improvement of corporate performance.Besides,since the employees are the subjects of the ESOP,the assessment of employees' actions will be very meaningful.The results of the research in this thesis also show that actions of the employees have been improved.Anyway,the research methods of this paper will present a new method for researches on the ESOP in the future.Enterprises that tend to adopt the ESOP in the future can learn useful experiences from this case study,yet they have to be alert to some deficiencies of the study.