Research On The Implementation Effect Of Employee Stock Ownership Plan Of Suning Commerce Group Company Limited

The employee stock ownership plan is an incentive mechanism that encourages employees to increase their enthusiasm and connect the interests of the company with the interests of employees by allowing employees to participate in the shareholding,enabling them to share the company's remaining equity and participate in company management.In June 2014,the China Securities Regulatory Commission issued the “Guidelines on the implementation of pilot employee stock ownership plans by listed companies”(hereinafter referred to as “Guiding Opinions”),which are the key elements to be noted when formulating and implementing employee stock ownership plans for listed companies in China.Clear regulations have been made,which is of great guiding role in promoting the standardized development of China's employee stock ownership plan.As a result,the long-lost employee stock ownership plan has once again set off a boom,and 2014 is the second year of Suning's O2 O strategic transformation,at the time of Suning's thirst for talent reserves.Under the joint action and demand of internal and external environment,Suning launched the first employee stock ownership plan in September of that year and actively responded to the “Guidance Opinions”.Its employee stock ownership plan is very representative.Therefore,this paper takes Suning as a research to study the impact of the implementation of employee stock ownership plan on market reaction,financial performance,employee productivity and turnover rate,and explore the advantages and disadvantages of employee stock ownership plan implementation for Chinese listed companies.The employee stock ownership plan provides reference and can also provide some optimization suggestions for the future promotion and application of the employee stock ownership plan.This paper first introduces the theoretical basis and literature review related to the employee stock ownership plan.The relevant theoretical basis grasps the causes of the implementation effect of the employee stock ownership plan.The reading literature review understands the current domestic and foreign scholars' incentives for the employee stock ownership plan.Research level;Secondly,the author introduces Suning Company and its three-phase employee stock ownership plan.Then,from three dimensions,analyze the implementation effect of the shareholding plan: In terms of market reaction,based on the 2015 employee stock ownership plan,through the event research method,calculate the cumulative abnormal return rate of the window period before and after the announcement date,and evaluate whether the announcement is Positive impact on the market;in terms of financial performance,through comparative analysis,longitudinal analysis of Suning 's 2013-2017 financial statements to evaluate corporate profitability,operations,debt repayment,development capabilities,employee productivity changes,while the same industry On behalf of the enterprise Gome retail,Alibaba and Suning business horizontal comparison,analysis and evaluation of the employee shareholding plan implementation,the impact of different employee shareholdings on the financial performance of the company;in terms of employee composition,through the analysis of 2013-2017 Suning employees' academic qualifications change and evaluate the preventive effect of employee stock ownership plans on brain drain.Finally,based on the above analysis results,the author combines the classic theory of the employee stock ownership plan,analyzes the causes of the shortcomings in the design mechanism of Suning employees' shareholding plan and proposes corresponding optimization suggestions.The following conclusions can be drawn from the analysis of this paper: First,in terms of market response,the employee stock ownership plan can generate short-term positive incentives;in terms of financial performance,the implementation of the employee stock ownership plan can improve the company's profit and compensation in a short period of time.Debt,development ability,and the improvement of solvency is particularly obvious,but in terms of business operation capability and employee productivity,the incentive effect of the shareholding plan is not significant;in terms of employee qualifications,the implementation of the employee stock ownership plan fails.Significantly increase the proportion of the company's highly educated core technical talents,and exert its expectations to strengthen the talent pool.Second,the higher the shareholding ratio set in the employee stock ownership plan,the more obvious the incentive effect of the plan.Third,China's employee stock ownership plan currently has problems such as short incentive duration,unclear participant rights,narrow incentives,and lack of regulatory supervision.It is necessary to further improve the institutional environment and laws and regulations to regulate the domestic employee stock ownership plan system.development of.Fourth,in the design stage of the employee stock ownership plan,listed companies should adjust the key elements in time to grasp the most basic principles,combined with their own situation,implementation objectives and current external market conditions,in order to obtain the best incentive effect..