Research On The Impact Of Employee Stock Ownership Plan On Enterprise Performance

With the strengthening of the trend of global economic integration,the competition among enterprises is intensifying,in the face of such a fierce competitive pattern,how to improve performance has always been a crucial issue for enterprises to consider.For enterprises,competitive performance in all aspects of business management,production and so on,but it boils down to one point focused on the competitiveness of talents.How to effectively attract,retain talents and fully mobilize the enthusiasm of employees is particularly important for improving enterprise performance.Employee stock ownership plans that is an incentive measure is one of the effective ways to attract and stabilize talents.The “Guidance on the implementation of pilot listed company's employee stock ownership plan" were issued by the SFC in June 2014,many listed companies to respond positively,which makes the heat rising employee stock ownership plan.Lots of listed companies expect to improve their performance and corporate governance structure through employee stock ownership.However,from the research status at home and abroad,there is no unified conclusion whether employee stock ownership plans has an impact on enterprise performance,and there is less research on the relationship between employee shareholding ratio and enterprise performance,employee shareholding scope and enterprise performance.Under this background,this paper empirically analyzes the impact of employee stock ownership plan on enterprise performance based on theoretical research.First of all,this paper reviews and summarizes the research results of employee shareholding plan in recent years,and discusses the influence of employee shareholding plan on enterprise performance on the basis of two-factor theory,sharing economic theory,human capital theory,principal-agent theory and incentive theory.Then,this paper chooses A-share listed companies which issued the announcement of employee stock ownership plan in Shanghai and Shenzhen stock exchanges from 2014 to 2017 and entered the implementation stage as the research sample,and uses principal component analysis method to construct the index system to measure the performance of enterprises,and verifies the impact of employee stock ownership plan on the performance of enterprises through empirical methods.Further,from the employee shareholding ratio,employee shareholding scope of the two aspects ofin-depth exploration of its relationship with enterprise performance.Through the theoretical and empirical analysis of this paper,the main conclusions are as follows:(1)Implementing employee stock ownership plan can improve enterprise performance.(2)Increasing the proportion of employee shareholding can promote the improvement of enterprise performance,and the higher the proportion of ordinary employees subscription,the more obvious the effect is.(3)Expanding the scope of employee stock ownership can improve enterprise performance,but blindly expanding can not always significantly improve enterprise performance,there is a reasonable range of employee stock ownership.On this basis,this paper further proposes to improve the relevant legal system of employee stock ownership plans,provide preferential tax policies,rationally optimize the proportion of it,scientifically arrange the scope of it and formulate appropriate performance appraisal,so as to promote the development of Employee stock ownership plans.Therefore,the research in this paper is helpful to deeply understand the impact of employee holding plan on enterprise performance.At the same time,it can also explore the factors that companies need to consider when designing employee shareholding plans in order to better play their ability to improve enterprise performance.In addition,it can also provide reference for the design of employee shareholding plans of other enterprises.