Research On The Design Of Employee Stock Ownership Plan Of Listed Companies

Generally speaking,Employee Stock Ownership Plans is by employing the method of changing agent identity and increasing additional income to make them effectively provide long-term service so as to achieve the goal of all interests.While some companies raise the capital they need to grow their companies through Employee Stock Ownership Plans,it is in essence an incentive mechanism.As one of the ways to solve the principal-agent problems,foreign capital markets have saw a mature development on Employee Stock Ownership Plans,while domestic listed enterprises launched this plan in a large scale only after Chinese Securities Regulatory Commission issued A Guideline on the Trial of Employee Stock Ownership Plans on Listed Enterprises in June 2014.Some of these enterprises have achieved their original purpose through the stock ownership plan,while others have not achieved the incentive effect,but have lost a lot due to improper operation.In 2015,in particular,China's stock market suffered ups and downs,which forced many listed companies to end their introduced Employee Stock Ownership Plans.Why are Employee Stock Ownership Plans of listed companies so different no matter in form or in effect?To trace this problem to its source,design is the key to employee stock ownership plan.The author found when looking up the existing literature,found that most of the literature has chosen to make research from the perspective of the influence of the Employee Stock Ownership Plans,while some chose to combine Employee Stock Ownership Plans with the mixed ownership reform and hold the view that the Employee Stock Ownership Plans was one of the way.However,few literature talked about Employee Stock Ownership Plans from the aspect of its design,which is exactly the key to make Employee Stock Ownership Plans.The difference between this paper and the existing literature is that this paper analyzes the Employee Stock Ownership Plans from the perspective of how to design it,and verifies it with existing cases,which has a strong guiding significance for listed companies.Based on case study method,this paper first summarizes and organizes the theoretical basis and the literature review of the Employee Stock Ownership Plans.On this basis,this paper makes theoretical analysis on its design from three factors of timing,motivation and components when designing Employee Stock Ownership Plans.Then,by introducing the typical Wonders Information Co.,ltd.as an example,this paper tries to find out what problems emerge in which aspect though respectively inspecting the design of the Employee Stock Ownership Plans during three periods.Finally,this paper puts forward some advice and suggestions according to the problems exposed in Wonders Information Co.,ltd,and hopes to provide references to other listed companies when designing their own Employee Stock Ownership Plans.