Research On The Relationship Between Esop And Listed Companies' Performance

The employee stock ownership plan(ESOP)began in the United States in the 1950 s.In China,theoretical research and practical activities related to it began only in the 1980 s and then many changes in policy and corporate practices occurred.The new turning point began in June 2014,when China Securities Regulatory Commission issued the "Guiding Opinions on the Pilot Program for the Implementation of Employee Stock Ownership Plans by Listed Companies" and made special provisions on employee stock ownership plans.This is the first time that China has held shares with employees from the state system level.The plan made more systematic regulations,after which a large number of listed companies began to implement employee stock ownership plans one after another.Since the implementation effect of the employee stock ownership plan will be affected by the institutional environment and the content of the plan,the foreign practical experience has little significance for the implementation of the employee stock ownership plan in China.Because of the particularity of Chinese economic and political environment,it is import to study the issues related to employee stock ownership plans based on national condition.With the increasingly fierce competition among enterprises,the employee stock ownership plan is used as a means of long-term incentives to improve companies' performance.And the interests of employees and shareholders also can be agreed as the corporate performance,then employees will be motivated to work hard to improve it.At present,a large number of scholars at home and abroad have researched the influence and role of the employee stock ownership plan on corporate performance.However,whether the employee stock ownership plan has a positive impact on company performance has been widely discussed by scholars.At the same time,in practice,the employee stock ownership plan also brings different performance to the company.Therefore,what kind of impact the listed Analysis of Hytera company's employee stock ownership plan will have on corporate performance is worth exploring further.Based on the current situation of the employee stock ownership plan,this article will systematically review domestic and international literature from the three aspects of the connotation,market effects,and company performance of this plan first.And the author plans to use agency theory,two-factor theory,the theory of sharing economy and labor rights theory to describe the theoretical basis of it.Theory and labor rights theory describe the theoretical basis of employee stock ownership plan.Further,this article describes the development history,implementation status and existing problems of employee stock ownership plans for listed companies in China,laying the foundation for the next concrete case analysis.Based on theoretical research and analysis of the status quo,this paper selects Hytera's employee shareholding plan as a typical case study.Firstly,the brief introduction of the case company and its implementation of the three-stage employee stock ownership plan are presented.Next,the motivation of the employee stock ownership plan is analyzed based on the specific situation of the company,and then the short-term market performance,the financial performance,the innovation performance,and shareholder wealth effects are analyzed.At the same time,the impact mechanism of the employee shareholding plan on business performance was analyzed.During the analysis process,it was discovered that Hytera existed some problems during the implementation of the employee stock ownership plan.This study has drawn the following conclusions.Firstly,From the short-term perspective,the employee stock ownership plan has received positive response from investors in the short-term announcement,so it performed well in the short-term market.Secondly,from In the long-term,Hytera's financial performance and human capital efficiency have not been significantly improved,but innovation performance and shareholder wealth effects have shown good performance.Thirdly,There are two problems in implementing the employee stock ownership plan.There is no substantive change in the ownership structure of the enterprise,and the corporate governance structure has not been effectively improved.Moreover,as the large number of participants and the wide range of the company's employee stock ownership plan without performance assessment condition,employees will enjoy “free ride” conditions.Therefore,this motivation is not efficient.Based on this,this paper puts forward relevant suggestions from both macroscopic and microscopic levels.This paper provides some data and experience for the listed company's employee stock ownership plan.Based on a large amount of data to macroscopically analyze the development status,characteristics,and problems of the listed company's employee stock ownership plan,this article will start an in-depth micro-analysis of Hytera's influence of this plan on various aspects of the company's performance and its problems that should be worthy of getting attention from the regulatory authorities and the enterprise.This paper intends to provide some references for the implementation of relevant national policies and suggestions for other listed companies' implementation of employee stock ownership plans eventually.