A Research Of Stock Market Reaction To Esop Of Listed Companies

Employee Stock Ownership Plan(ESOP)originated in the United States in the middle of the 20 th century.It is a system in which enterprise owners and employees share ownership and future earnings.Its theoretical basis is the idea of expanding capital ownership proposed by American lawyer Louis kelso in 1958.The ESOP enables employees to own part of the company's property rights and future earnings by purchasing shares of the company,so as to closely link the interests of employees with the performance of the company,and achieve the goal of attracting talents,stabilizing the team and providing long-term incentives.The implementation of ESOP in China started late.Since the 1980 s,with the reform of state-owned enterprises in China,ESOP has gradually emerged and developed.However,in the more than 30 years since the emergence of ESOP in China,its development process has been very tortuous and has been stopped several times.On June 20,2014,China securities regulatory commission issued the guidance on listed companies' pilot implementation of ESOP,which clearly regulated the implementation of ESOP by listed companies in China and laid the institutional foundation for the implementation of ESOP at the current stage.It has aroused the positive response of the capital market,and listed companies have begun to carry out the pilot work.By the end of June 2018,more than 700 listed companies have disclosed their employee stock ownership plan,which means that nearly A quarter of listed companies have carried out ESOP.In this background.Firstly,this paper systematically sorts out the theoretical basis of ESOP and the research results of domestic and foreign scholars on ESOP,and summarizes and comments on the differences and deficiencies of previous studies.Then,it introduces the development status,implementation procedures and main modes of ESOP in China.In terms of empirical research,this paper selected the companies that implemented ESOP from the issuance of the guidance to June 20,2018.After removing some samples that may affect the results of the study,595 samples of announcements of esop plans and 537 samples of announcements of ESOP purchase completion were finally obtained.First of all,this paper adopts the event study method to test the market response to the disclosure of listed companies' ESOPs.Then,multiple regression analysis is used to analyze the influence of fund source,stock source,leverage ratio,shareholding ratio,executive subscription ratio and other program terms on the market response,and at the same time,the announcement effect of employee stock ownership plan under different issuance markets and different market conditions is investigated.After that,the influence of the announcement of purchase completion of ESOP on the market reaction is investigated.Finally,analyze the empirical results,and provides Suggestions for regulators,listed companies and investors while drawing relevant conclusions,which is of great theoretical and practical significance.Empirical results show that :(1)the announcement of ESOP issued by listed companies will produce positive announcement effect,and abnormal return rate will be generated in the market one day before the announcement,indicating that there may be information leakage in China's stock market.(2)for the specific terms of the ESOP scheme,the announcement effect of ESOP whose stock source is the subscription of non-public shares is more significant than that of ESOP purchased in the secondary market;The more the shareholding ratio is,the more significant the effect will be.(3)investors have different preferences for ESOP in different market types and stages.Compared with the main board market,gem and small and medium-sized board companies using private development and issuance is more popular;At the bull market stage,the market is more favorable to the employee stock ownership plan that adopts the non-public offering method and has higher employee participation;Compared with the bull market,In the bear market,the employee stock ownership plan with a larger shareholding ratio is more recognized by the market.(4)the announcement of the completion of ESOP purchase by listed companies will produce positive announcement effect.At the same time,compared with the non-public release ESOP,the announcement of the completion of ESOP purchase in the secondary market contains more new key information,so the positive market reaction is stronger.