The Impact Of Employee Stock Ownership Plans On Corporate Performance

The Employee Stock Ownership Program(ESOP)first appeared in the United States in the 1950 s and has been continuously developed and refined in the United States.At that time,some scholars in the United States began to study the employee stock ownership plan,and some companies began to study and plan to implement it.By the end of the 20 th century,tens of thousands of companies and tens of thousands of employees in the United States had held company stocks through employee stock ownership plans.The great success of the employee stock ownership plan in the United States has led countries to learn from imitation.In the 1980 s,Chinese companies officially contacted the employee stock ownership plan.During the 30 years of continuous exploration,due to the lack of relevant laws and regulations and the rigorous system,the implementation of the employee stock ownership plan was frequent.Therefore,the CSRC suspended the employee stock ownership system when the new "Company Law" was implemented in 2003,and on June 20,2014,announced the "Guiding Opinions on the Pilot Implementation of the Employee Stock Ownership Plan for Listed Companies",which holds shares for employees.Various aspects of the plan are defined,including participation conditions,stocks and funding sources.In addition,the Guiding Opinions clearly state whether employees of the company participate in the voluntary principle.Employees can hold company stock through the employee stock ownership plan and receive corresponding income according to the agreement.Since then,the employee stock ownership plan,which has been suspended for more than a decade,has officially restarted.This paper first analyzes the implementation of China's employee stock ownership plan,and summarizes the current characteristics and existing problems.Then it selects Join-Cheer Software Company as the research object,analyzes its employee stock ownership plan,including the source of funds,participants,asset management plan,etc.,and analyzes the advantages and disadvantages of the program based on the current implementation situation in China.And from a variety of perspectives to measure the changes in the company's performance after the implementation of the shareholding plan,the company's financial indicators over the years,a vertical comparison,from a financial perspective analysis of the company's profitability,growth,solvency and operational capabilities,and It compares it with the average industry level of similar companies and the same industry;analyzes the company's innovation ability,employee retention rate,employee efficiency and market response from a non-financial perspective,and the combination of the two reflects the implementation of the employee stock ownership plan.The impact of the software.The study found that the implementation of the employee stock ownership plan improved the short-term profitability of the company's software,improved the company's financial status and improved company performance,increased shareholders' short-term wealth,and increased employee loyalty and enhanced the company's innovation.Ability to improve the company's competitiveness.Finally,based on the analysis and conclusions of this paper,three suggestions are proposed.The employee stock ownership plan assists the technology-based enterprises,establishes a scientific performance evaluation system,and sets a reasonable incentive period.