Study On The Effect Of Employee Stock Ownership Plan Incentive

In the management of enterprises,employee incentive is a very important work.Only by building a good employee incentive mechanism,can employees be better able to devote themselves to production and work,and bring benefits to enterprises.At present,our country is in a critical period of social transformation.In the process of realizing enterprise modernization,the construction and improvement of staff incentive system is an important measure to optimize enterprise management and strengthen the construction of enterprise culture.In the 1950 s,ESOP was born in the United States.China's modern employee stock ownership system has gradually developed and improved in the process of state-owned enterprise reform and capital market development.It has gone through many stages,such as learning and exploration,propaganda and application,gradual standardization,development breakthroughs and improvement since the mid-1980 s.As an equity incentive measure,employee stock ownership plan is also a means of corporate governance.What is the incentive effect of employee stock ownership plan and how the market reacts to its incentive effect are all questions we should study.Therefore,it is of great significance to study the market effect of ESOP incentives for improving and developing ESOP in China,giving full play to its role,and establishing and improving enterprise management mechanism and incentive mechanism.Based on the above background,this paper studies the market effect of ESOP incentives by combining the qualitative analysis method based on literature research and the quantitative analysis method based on cases.This paper takes the employee stock ownership plan of JR Group Co.Ltd.as an example,according to the specific situation of the company's implementation of employee stock ownership plan,from the research background,case basic situation,motivation analysis and market effect analysis,to analyze the market reaction of employee stock ownership plan incentives,with a view to achieving a comprehensive understanding of employee stock ownership plan in the process of in-depth study of the case.The conclusion of this paper provides a theoretical reference for Chinese listed companies to decide whether to issue ESOP or not,and provides the corresponding improvement basis for those companies that have already implemented ESOP but have not achieved the expected results.At the same time,it also provides someexperience for those companies that intend to announce the implementation of ESOP.