Research On Incentive Of ESOP In State-controlled Enterprises

The 3rd Plenary Session of 18 th CPC Central Committee explicitly proposed to allow the mixed ownership economy to implement employee stock ownership.Subsequently,in 2015,the State Council promulgated the “Guiding Opinions”,which clearly stated that employees may be allowed to implement ESOP in a voluntary manner,and their forms may be diverse.Next,relevant departments gradually introduced policy specifications and improvements.In this context,state-owned enterprises have responded to the call and actively launched ESOP.By 2018,nearly 100 state-owned enterprises implementing ESOP have become hot spots for the reform of state-owned enterprises' mixed ownership.This paper selects Haige Communication as the research object,and uses the case study method to study the ESOP launched by Haige Communication in 2014.First,the ideas and framework adopted in this paper are introduced,and the background is introduced.Then,it introduces the research and discovery of scholars' shareholding plans by domestic and foreign scholars.Next,introduce the basic nouns and theories to facilitate the understanding of this article.Secondly,it briefly introduces the development history of Haig Communication,the reasons for the implementation of the ESOP and the process of implementing the plan.After that,it focused on the financial and non-financial data of Haige Communication,and analyzed the incentive effects and effects of its plans for the company.Thirdly,combining the theory and practice at home and abroad,some optimization measures are proposed for the ESOP of Haige Communication.Finally,based on the analysis of the above cases,draw conclusions.Make reasonable suggestions to the government and the competent authorities and the enterprises themselves.The research findings in this paper are as follows:(1)The ESOP of Haige Communication has raised a large amount of funds for enterprises,which eased the pressure on corporate liquidity.At the same time,the successful implementation of the ESOP has successfully demonstrated the implementation of the ESOP for state-owned enterprises.and provided valuable experience for the reform of state-owned enterprises.(2)In the short-term,the employee stock ownership plan provides employees with enthusiasm and various financial indicators have risen.However,in the long run,the incentive effect is not significant.On the market side,the cumulative excess return rate of Haige Communications Inc.indicates that the market recognizes the act.(3)Haige's ESOP has some unreasonable design in its design.It does not protect the interests of its shareholders.Therefore,it is not very attractive to employees.Naturally,it has little effect on retaining and attracting talents.In short,the purpose of implementing ESOP in state-owned enterprises is to realize the diversification of equity of state-owned enterprises,so that employees and enterprises form a community of interests,which is conducive to enhancing the value of the company.To achieve this goal smoothly,not only the company needs a reasonable design system,but also the relevant departments need to establish and improve laws and regulations,and adapt to local conditions.I hope that through the research of Haige Communication's employee stock ownership plan,this paper can provide some experience and reference for deepening the reform of state-owned enterprises.