Research On The Implementation Effect Of Employees' Shareholding Plan In Listed Companies

The employee stock ownership plan originated in the United States in the 1950 s.Later,developed countries such as the United Kingdom,Japan,and Spain began to follow suit.After continuous trial and exploration,they finally launched an employee stock ownership system that matched their respective national conditions.In China,theoretical research and practical activities on employee stock ownership began in the 1980 s,and then experienced a bumpy development process in the past 30 years.Until 2014,the CSRC issued "Guiding Opinions on the Pilot Implementation of the Employee Stock Ownership Plan for Listed Companies".This is the first time that China has made systematic regulations for employee stock ownership in the perspective of regulation design.Since then,a number of listed companies have responded to the call of the policy,and have issued announcements on the implementation of employee stock ownership plan.The new economic normal era requires changes in the way of economic development,that is,from labor-driven and resource-driven to innovation-driven and productivity-driven.Being coupled with continuous refinement of social labor division,the demand for high-quality talents continues to expand.However,due to the more and more fierce competition among enterprises,it is necessary for enterprises to establish a sound human resources management system to attract outstanding talents,especially to establish a long-term incentive effective system.As an effective means of long-term incentives,the employee stock ownership plan enhances employee enthusiasm by forming a community of interests between employees and shareholders.The multiple benefits of the employee stock ownership plan are constantly being recognized by more and more companies.Based on this background,this paper first systematically sorts out the relevant literatures on the connotation of employee stock ownership plan and the implementation consequences of employee stock ownership plan,and makes a brief review.Then it expounds the basic theory of employee stock ownership plan and analyzes the connotation of the implementation effect of the employee stock ownership plan theoretically.It is summarized into three aspects: market effect,incentive effect and governance effect.Based on this,the evaluation system for the employee stock ownership plan' implementing effects is constructed from four dimensions: market,employee,finance and governance.After that,it introduces the institutional background and implementation status of China's employee stock ownership plan,and points out the existing problems,which provides background support and theoretical support for the following case analysis.This paper selects MAYUN FOODS as a typical case study.Firstly,it introduces the company's profile and the industry background,and elaborates on the three-phase employee stock ownership plan.Secondly,it analyzes the motivation of the employee stock ownership plan based on the industry background,and then analyzes the implementation effect of the employee stock ownership plan from the market level,employee level,financial level and governance level.Finally,it points out some problems existed in the implementation of the employee stock ownership plan.Through the research on the implementation effect of the employee stock ownership of the company,the paper draws following conclusions: Firstly,the stock ownership plan of the company has produced more significant market effects and incentive effects,but the governance effect is not good.At the market level,the stock market's employee shareholding plan responded positively in the short term,which enhanced shareholders' wealth.Meantime,it significantly enhanced the company‘s market competitiveness.At the employee level,the employee stock ownership plan effectively improved employee loyalty,enhanced the overall quality of the team,and increased the wealth of the shareholding employees effectively,but the efficiency of human capital increased very little.At the financial level,the employee stock ownership plan has effectively optimized the company's capital structure and indirectly improved the company's operating performance.At the governance level,the stock ownership has not optimized shareholding structure,or decreased the agency costs,which means the governance effect has not improved.Secondly,there are still four problems in the implementation process of the employee stock ownership plan: due to high equity concentration,low employee shareholding ratio and the defect of management method,governance structure has not been effectively improved;the employee stock ownership plan has a large number of participants and lacks performance appraisal conditions,which is prone to “free rider” phenomenon;The period is too short,and there is a leverage model,which can lead to short-term welfare tendencies and reduces incentive effects;After the implementation of employee stock ownership plan,the “high transfer” plus “high pay” dividend policy has greatly promoted the wealth growth of management,but to a certain extent hinders the company's expansion.While the same batch of management personnel are repeatedly motivated within three years,there is suspicion of transferring benefits to the management.Based on the above analysis,this paper puts forward corresponding suggestions for other listed companies that implement employee stock ownership plans as a reference.