Empirical Study On The Impact Of Employee Stock Ownership Plan Implementation Scheme On Its Announcement Effect

Employee Stock Ownership Plan(ESOP)refers to the way in which an enterprise lets its employees own equity,which belongs to the equity incentive system.In 2014,the Securities Regulatory Commission issued “guidance on employee stock ownership plan of listed companies,which provides operable normative guidance for the implementation of employee stock ownership plan of Listed Companies in China.Since the issuance of Guiding Opinions,The number of listed companies implementing employee stock ownership plan is increasing every year.Now hundreds of listed companies implement employee stock ownership plan every year,but the market reaction is different.So Does the event of employee stock ownership plan have significant announcement effect? And how will the factors of the specific implementation plan affect the excess returns of the event?To solve above problems,this paper selected 467 A-share listed companies that implemented ESOP from June 2014 to December 2017 as research samples,and used the event study method to verify whether there is announcement effect in the implementation of ESOP by Chinese listed companies.On this basis,this paper chooses five program elements of ESOP as explanatory variables to carry out multiple regression analysis,and tests the impact of specific implementation program elements of ESOP on event announcement effect according to the regression results.This paper is mainly divided into six parts: The first part is the introduction,which elaborates the research background,contributions,framework,etc The second part is the literature review,tThis paper summarizes the research on ESOP at home and abroad from three aspects: the relationship between ESOP and company performance,the announcement effect of ESOP and its influencing factors.The third part is theoretical analysis and hypothesis.Based on the empirical results of foreign countries,this article put award the experimental hypothesis.The fourth part is empirical design,this section firstly explains the sample and data sources of this study,then introduces the event study method,and finally constructs a multiple regression model to test the impact of specific elements of ESOP implementation plan on the announcement effect.The fifth part is the test results and analysis.The excess earnings of the event window period can be used to judge whether there is an announcement effect in the ESOP in China.On this basis,we use multiple regression model to test and analyze the impact of specific elements of ESOP implementation plan on event announcement effect one by one,and carry out robustness test.The sixth part is the conclusion of the study,which summarizes the main conclusions of this study and puts forward corresponding suggestions and future prospects.The main conclusions of this paper are as follows:(1)There is a significant positive announcement effect in the announcement of the implementation of ESOP by Listed Companies in China.Specifically,in the event window period(-2,2),the excess return is 3.16%.In(-10,10)event window period,excess earnings reached 4.69%.(2)If the source of funds of ESOP contains leverage,its announcement effect is stronger than that without leverage.(3)If the stock source of ESOP is subscribing to non-public offerings,its announcement effect is stronger than that of the secondary market purchase type.(4)The incentive degree of management is positively correlated with the announcement effect of ESOP.The degree of employee incentive is positively correlated with the announcement effect of ESOPThere are two innovations in this paper:(1)This paper makes a comparative study of two event window periods,(-10,10)and(-2,2).And then analyses whether there are differences in the excess returns of ESOP events and the impact of project elements on them in the two window periods..(2)This paper comprehensively considers all kinds of project elements of ESOP,and explores the impact of project elements such as capital sources,stock sources,managerial ownership scale,employee ownership scale and participation scope on event announcement effect.