Study On The Incentive Effect Of Employee Stock Ownership Plan In State-owned Enterprises

Employee stock ownership plan is a part of the deepening reform of state-owned enterprises.Since June 20,2014,the Securities Regulatory Commission issued "Guidance Opinions on the pilot implementation of employee stock ownership plan by listed companies",the longstanding employee stock ownership plan has set off a boom in state-owned enterprises.The goal of state-owned enterprise reform is to establish an independent corporate governance structure on the basis of diversified ownership,and further improve the allocation efficiency of various resources through the reform of mixed ownership.Employee stock ownership plan helps to optimize the ownership structure,which can form a clear balance of interests among state-owned assets,civil assets and employee stock ownership.In this paper,case study method is used to study the employee stock ownership plan implemented by PEARL RIVER on March 22,2016.Firstly,based on the theory and literature review,this paper combs the development process of employee stock ownership and analyzes its implementation status.Secondly,it summarizes the company's profile,analyzes its implementation motivation,and describes its specific implementation plan and content.Then,it focuses on the analysis of the impact of ESOP,including the incentive effect inside and outside the company,and the incentive effect of ownership structure,financial performance,market reaction and employee recognition.Finally,conclusions and suggestions are drawn.Through the case study in this paper,the author finds that employee stock ownership plan can promote the optimization of ownership structure of state-owned holding enterprises,and improve corporate governance institutions after employee stock ownership;it can not only prevent the loss of state-owned assets,but also mobilize the enthusiasm and creativity of employees,promote the improvement of financial performance and competitiveness;it can also improve employee recognition and retention.Living in and attracting talented people can also convey good information to outside investors,and share prices have risen,thus enhancing the value of shareholders.The purpose of employee stock ownership plan in stateowned enterprises is to promote the integration of capital owners and workers,optimize ownership structure and improve performance.This requires the effective supervision and management of the government and enterprises themselves to constantly improve the program in practice.Through the case study of PEARL RIVER,this paper enriches the research literature of ESOP to a certain extent,which has more guiding significance for the development of state-owned enterprises,and also provides a good reference for the formulation and effective implementation of ESOP in state-owned enterprises.