ESOP,excessive Investment And Cash Dividend Distribution

June 2014,the China securities regulatory commission issued a “guidance on the implementation of employee stock ownership plan of listed companies”,then many listed companies have announced the implementation of employee stock ownership plan(ESOP).This plan is a long-term incentive for the employees of the company,which has a far-reaching influence on the corporate governance structure and the company's operation.The effect of the implementation of ESOP and the impact on the company's cash dividend distribution and other financial behaviors are all important issues,which is a worth studying.This paper intends to carry out a special study on the above issues,which is expected to be beneficial to the smooth implementation of ESOP of listed companies in China.This paper uses multiple linear regression and other research methods in the case of the A-share listed companies in Shanghai and Shenzhen in 2014-2016,studying the relationship between ESOP,excessive investment,and cash dividends.The paper is divided into five parts.The first part is the introduction;The second is basic theory and literature review;The third is empirical research design;The fourth is empirical results and analysis;The fifth is the conclusion and suggestion.Through the above study,we draw the following three conclusions.Firstly,the company employee stock ownership plan lead to pay out more cash dividend.That is,the implementation of the ESOP positively related to the strength of cash dividend distribution.Secondly,the more serious the company's overinvestment,the less cash dividends are distributed,in other words,the degree of excessive investment is negatively correlated with the distribution of cash dividends.Thirdly,the implementation of the ESOP helps to reduce the conflict between excessive investment and dividend distribution.