| ESOP is regarded as an important employee benefit to motivate employees to work harder in mature market abroad.The experience from oversea shows that ESOP can significantly improve managements and competitiveness to the company.In China,ESOP also plays a positive role in improving the income distribution system.Since "guidance” being launched,the number of the employee stock ownership plan has been growing for those listed companies,by the end of December 2018,of more than 700 listed companies launched the employee stock ownership plan in Shanghai and Shenzhen,however,due to the stiff "guidance" related regulation,the listed company also carried on the different levels of innovation in practical,furthermore,the related regulatory measures of employee stock ownership plan is not perfect enough,the arrangement of the listed company appeared many problems on the employee shareholding,which made the employee stock ownership plan couldn’t reach its origin will that covered in all aspects.Although ESOP has been widely implemented in China for more than 4 years,in the meanwhile,many listed companies have implemented ESOP,but not all enterprises have achieved the desired effect,and ESOP is often being postponed or even stagnated due to poor managements.Therefore,it is necessary to keep tracking the process of those listed companies how to run the ESOP,analyze the existing problems and summarize the successful experience.Due to the late starting of study in our country,the employee stock ownership plan just started,and short of the number of samples,which makes the theoretical circle in our country lacks of materials of study of ESOP,the way how improve corporate performance is controversy in both abroad and here,which included how to generate the employee stock ownership plan incentive effect,which factor makes the impact and affect the incentive effect,etc,for these still have not form a comparatively complete research,which still under discussion.Taking Sany heavy industry as an example,a large domestic construction machinery manufacturer,this paper explores the problems of existing in the implementation of its ESOP and studies whether it achieves the expected incentive effect.It firstly focusing on the motivation of ESOP,incentive effect and the factors influencing the effect of a review of previous literature,and expounds the related concepts,theoretical basis and defined,and then based on the implementation of ESOP of the current situation in our country.According to the characteristics that the listed companies provided,under the analyses of trait and related characteristics of ESOP,by utilizing the analysis of financial indicators to analyze the changes to the financial performance for those company that implement the ESOP.The last,of the world’s eighth largest engineering machinery enterprises,SANY heavy industry as the research object,The relevant case analysis of the ESOP implemented by the company is conducted which looking forward to provide a certain experience reference for the subsequent implementation of ESOP by the company afterwards.The main conclusions of this paper include the followings:(1)Generally speaking,the incentive effect of ESOP on enterprises is not all the same,and the incentive effect of sample companies in different industries share the different results after implementing.More than half of the enterprises have improved their profitability and operational efficiency after the implementation of ESOP.Compared with other industries,computer,electronics,communication and mechanical equipment industries have received better incentive effect of ESOP.(2)After the implementation of the ESOP,the market responded positively to the implementation of the ESOP by SANY and could obtain excess shareholder wealth in a short term.From the perspective of profitability,operating capacity,growth capacity and shareholder income,this paper figures out that the financial performance of SANY has been improved in some extent both vertically and horizontally comparison.Finally,based on the incentive effect for employees,it found that after the implementation of ESOP,SANY’s employee turnover rate has decreased,and employees’ work enthusiasm and creativity have also been stimulated.In addition,SANY’s ESOP has brought better economic returns to the participating employees and has a better incentive effect for employees.SANY’s ESOP is relatively successful on the whole,which can provide certain experience and inspiration for other listed companies to implement ESOP. |
