Employee Stock Ownership Plan And Company Performance

The employee stock ownership plan(ESOP)has developed rapidly in China.At the same time,the pig breeding industry has the developing tendency of intensification and high quality.In order to cater to the trend of the industry,many companies set up the strategy of expansion.However,the realization of the strategy depends on the support of money and human capital.Therefore,enterprises urgently need a system that can effectively attract and motivate talents and raise large amounts of funds.ESOP is such a system.In this context,the pig breeding enterprises represented by Wenshi and Muyuan have gradually started the practice of ESOPs.However,Wenshi's ESOP was unfortunately miscarried,while Muyuan's successfully implemented.In order to explore the reasons for the success and failure,this paper compares the ESOP of Wenshi and Muyuan,and further analyses its impact on company performance.First of all,this papercombs the domestic and foreign scholars' research on ESOP and company performance,and reviews the theoretical basis of ESOP.Secondly,this paper introduces the basic situation of Wenshi and Muyuan shares,and analyzes the reasons for Wenshi's share from ESOP to the restricted stock incentive plan.Thirdly,this paper compares the implementation of ESOP by Wenshi and Muyuan in three aspects.Finally,this paper uses the event research method and the financial indicator analysis method to analyse the short-term market response and long-term operating performance of the ESOP.In the end,the paper draws three conclusions: Firstly,the implementation of ESOP has a certain promotion effect on the performance of the listed companies in the pig breeding industry;secondly,the determination of the scope of employee participation is of great significance to the smooth implementation of ESOP;thirdly,preparations for ESOP,determination of the shareholding ratio of employees,control of the implementation process,and special farming modes will also have a certain impact on the smooth implementation of ESOP.