Analysis Of The Impact Of Implementing Employee Stock Ownership Plan On Firm Performance

The Employee Stock Ownership Scheme(ESOP),which began in the early 1990s in China,was implemented rapidly in listed companies.Because of the irregular implementation process,the ESOP was suspended in 1998 and reopened in Listed Companies in June 2014.The increase of the sample of listed companies implementing ESOP provides the data basis for empirical research.Based on this,on the basis of theoretical analysis and literature review,this paper empirically studies whether the implementation of ESOP in listed private enterprises can promote corporate performance.This paper chooses the data from 2015 to 2016 as the sample,takes the disclosure date of ESOP as the starting time point,and takes HRI ROP as the proxy variable of enterprise performance,and the implementation of ESOP as the explanatory variable.Empirical study shows that the implementation of ESOP in listed private enterprises has a significant inhibitory effect on corporate performance.This paper further analyzes the sources of funds,stock sources,the ratio of senior executives to employees'subscriptions on corporate performance,and finds that the implementation of ESOP has no significant effect on corporate performance in private enterprises with self-financing funds and non-public offerings of stock sources.In private enterprises,the implementation of ESOP has a significant role in promoting enterprise performance,while the higher the employee subscription ratio,the stronger the inhibition effect on enterprise performance.In this paper,PE is used as a performance proxy variable for robustness test,and the above conclusion is still valid.The analysis shows that the lack of supervision of employee stock ownership and the imperfection of relevant laws and regulations make the employee stock ownership have certain self-profitable speculative behavior,which is not conducive to the improvement of enterprise performance.Finally,the paper puts forward corresponding countermeasures and suggestions to improve the ESOP.