Research On Employee Stock Ownership Plan In Listed Companies

In developed countries,the companies general achieved great performance by implemented the Employee Stock Ownership Plan,that through flexibly changing the scope,quantity and price of employee stock ownership.The implemented the Employee Stock Ownership Plan be put forward in China on purpose of promoting state-owned enterprises reform,but the excitation effect of it is facing more and more doubt.Since 2014,many listed companies implement employee stock ownership plans.The most important factor for listed companies to choose the implement employee stock ownership plans is whether the employee stock ownership plan can play a role in motivating the company's employees and to solve the problem of insufficient talents that to achieve the effect of promoting the company's business performance.Then,most of the correlation literature that domestic or overseas focus on the relevant systems,laws,modes and ect of employee stock ownership plan.Fewer case studies on specific employee stock ownership plans of listed companies and the main research object of employee stock ownership in China before is to state-owned large-scale enterprises,and few attention is paid to the employee stock ownership plan of domestic common listed companies.therefore,this paper studies the motivation of common listed companies to implement employee stock ownership plan through specific cases,points out the inadequacies and gives an improvement measures,it also summarizes and provides experience for other listed companies to implement employee stock ownership plans.This is conducive to the promotion and implementation of employee stock ownership plans in listed companies,which has certain practical significance and academic value.This study adopt literature research methods,theoretical analysis methods,and event research methods.Firstly,the basic concept and types of employee stock ownership plan are introduced,then recommend the Ruikang Pharmaceutical Co.,Ltd.,the specific content of employee stock ownership plans,implementation incentives,and two major features of employee stock ownership plans.Secondly,reaching whether employee stock ownership plan has positive effect on listed companies,by way of contrast the before and after the implementation of the Ruikang Pharmaceutical Employee Stock Ownership Plan on the financial status,employee structure,shareholding structure,institutional investor movements,and stock prices of the company,and also analyze the reference of that employee stock ownership plan.Then points out the inadequacies of the company's employee stock ownership plan and improvement measures.Finally,summarize the employee stock ownership plan of this case and provide experience for other listed companies to successfully implement the employee stock ownership plan.The findings of this paper are as follows:(1)Ruikang Pharmaceutical's employee stock ownership plan has clearly improved the profitability and solvency of the campanies.(2)Ruikang Pharmaceutical's Employee Stock Ownership Program helps companies attract and retain outstanding talents.(3)The release of the employee stock ownership plan delivered good news to the market,which led to an increase in share price yield,increased shareholder wealth,It has an incentive effect on the company's stock price.The relevant recommendations of this paper:(1)The implementation of employee stock ownership plan needs to be dynamically adjusted.(2)The design and implementation of Employee Stock Ownership Plan need to consider three factors: company situation,market conditions and employees.