The Impact Of Listed Company Employee Stock Ownership Plans On Enterprise Innovation

The rapid economic growth of China's reform and opening up over the past 40 years has greatly improved people's living standards.At present,the global economy is deepening and China's role and status in the global economy is becoming increasingly prominent.In 2017,China's total GDP has reached 82 trillion yuan,second only to the United States,ranking second in the world.However,the per capita GDP ranking is lower.The rapid growth of China's economy is still a widespread and extensive growth model.It does not rely on technological innovation to promote economic growth.The development mode of high savings and government investment should gradually change.From the 18th to the 19th,with the increasing emphasis on innovation in China,corporate innovation has increasingly become a hot topic in academic research.At present,academic research on equity incentives and enterprise innovation is more,and there are relatively few studies on ESOP and enterprise innovation.ESOP is a long-term performance reward program that gives employees employee stocks or options in order to be motivating.In June 2014,the China Securities Regulatory Commission issued relevant ESOP guidelines.By the end of 2017,the number of listed companies that had issued ESOP board meetings had reached 814,accounting for 22.34%of the total A-share market.Employees are the direct executors of enterprise innovation,and appropriate and reasonable incentives for employees are conducive to improving the competitiveness of enterprises.Since the party's 19th National Congress report clearly pointed out that to build China into an innovative country,the strategic position of innovation in China is becoming more and more important.Exploring the relationship between ESOP and enterprise innovation has profound theoretical and practical guidance for both countries and enterprises.significance.This paper uses a sample of companies from Shanghai and Shenzhen A-shares from 2014 to 2017 to discuss the relationship between listed companies implementing ESOP and corporate innovation.The study found that compared with listed companies that did not implement ESOP,listed companies that implemented ESOP had higher innovation output,and ESOP was conducive to promoting enterprise innovation.At the same time,the mechanism test shows that ESOP has a positive effect on enterprise innovation mainly by reducing agency costs and improving the risk-taking ability of enterprises.Further subdividing the elements of the employee stock ownership plan,the more people hold the employee stock ownership plan,the larger the actual fund size,the greater the proportion of employee compensation and self-raised funds in the source of funds,and the higher the percentage of executives per capita.The longer the lock-up period,the more the number of invention patent applications can be increased and the innovation ability can be improved.The main problem of this paper is the impact of the implementation of ESOP on corporate innovation by listed companies in China.The full text is divided into six parts:The first part is the introduction.Starting from the relevant policy background of the national employee stock ownership plan,combined with the report of the 19th National Congress,it is pointed out that China should be built into an innovative country,which leads to the research background and significance of this paper.On this basis,the research of this paper is proposed.The method and research content show the research ideas and the full-text framework of this paper through the graphic method.The second part is the literature review.It summarizes the development of employee stock ownership plan in China and its implementation motives and economic effects.At the same time,it combs the influencing factors and main characteristics of enterprise innovation,which lays a solid literature foundation for this research.The limitations of existing literature research are found out,which provides a research space for this paper.The third part is a theoretical overview of ESOP and enterprise innovation.It introduces the development and current status of related concepts.The theoretical basis includes incentive theory and human capital theory.It is the theoretical source of the relationship between ESOP and enterprise innovation.The fourth part is the theoretical analysis and hypothesis of employee stock ownership plan and enterprise innovation.The deductive reasoning method is used to analyze the relationship between the two.The main hypothesis of this paper is put forward:given other conditions,the ESOP is not implemented.Companies that implement ESOP can promote business innovation.The fifth part is empirical analysis,introduces the research sample,data source,research model and variable design,and the empirical results and analysis of this paper,including describing the relevant characteristics of the employee stock ownership plan,descriptive statistics on the total sample,and analyzing the employees.The return of shareholding plans and corporate innovation,further research and robustness testing.The sixth part draws the conclusions of this paper and puts forward relevant policy recommendations,and briefly expounds the research deficiencies and prospects of this paper.The research in this paper not only enriches the research literature of employee stock ownership plan and enterprise innovation,but also provides feasible suggestions for the regulatory layer to formulate relevant rules and company design and implementation of employee stock ownership plan.It also provides reference value for companies that implement employee stock ownership plan in the future.And guidance,which is conducive to improving the level of corporate governance,improving the cohesiveness and competitiveness of employees,realizing the optimal allocation of social capital,and contributing to the construction of innovative countries.In particular,this paper systematically analyzes the impact of ESOP on corporate innovation in China's listed companies from the perspective of employees and stakeholders,and helps employees to recognize their own values and give them a better role in the status of their laborers and capital owners.The right to safeguard their own interests,and indirectly safeguard the company's interests and promote the healthy development of the capital market.At the same time,the impact of ESOP elements on corporate innovation is different,and it also provides reference and guidance for listed companies in the formulation and implementation of ESOP.Encourage the employee stock ownership plan by expanding the ESOP holding ratio and expanding the proportion of executives' subscriptions.