The Effect Of Employee Stock Ownership On Enterprise Performance

The theory of employee stock ownership(ESOP)was first proposed in the 1870 s.This system promotes employees' benefits by allowing employees to hold shares in the company,and also encourages employees.At the same time,it can optimize corporate governance structure and promote the company's development.Although,in 1992,China officially began to implement the employee stock ownership plan,but in 1998 it was announced to stop.It continued until June 2014,after the SFC issued the guidance document,the employee stock ownership plan rose again.By the end of January 2019,more than 600 A-share listed companies had announced the announcement of the implementation of the ESOP.It is hoped that the implementation of the ESOP will improve the corporate governance and improve corporate performance.under such a circumstance,this paper also hopes to provide some reference for enterprises to implement employee stock ownership plans.This paper first analyzes the theoretical aspects related to employee stock ownership,and then expounds the current status of the implementation of our country's employee stock ownership plan,and puts forward the assumptions of this paper.Finally,by using the Differences-in-Differences model and the relevant data on the A-share listed companies from 2012 to 2018 and setting up the treatment group and the control group,the factors affecting the performance of the company are excluded from the factors other than the employee stock ownership plan.The final analysis shows that the implementation of the ESOP has an effect on the performance of the company,and this improvement effect is stronger in the state-owned enterprises.At the same time,in the robustness test part,the PSM method is selected to test the degree of matching between the control group and the treatment group,and then verify the rationality of the Differences-in-Differences model.After the conclusions of the analysis and the confirmation of the hypothesis,at the end,the relevant recommendations are given from the two main aspects of the enterprise and the government.