Employee Shareholding And Executive On-the-job Consumption From The Perspective Of Supervision

On-the-job consumption has always been a common problem in Chinese enterprises.Because on-the-job consumption is hidden and difficult to observe,the existing incentive supervision mechanism is not enough to significantly reduce the level of on-the-job consumption in enterprises.As a new kind of supervision means,the Employee Stock Ownership Plan aligns the interests of employees and companies by constructing the interest community between the company and employees.After holding shares in the company,employees will become the owners of the company,and their work enthusiasm and efficiency can be improved.Based on this,from the perspective of supervision,this paper discusses whether employees can effectively supervise and restrict management's behavior after holding the shares.This paper uses the relevant data of China's A-share non-financial listed companies from 2014 to 2018 as a sample.Based on existing research and related theoretical analysis,the paper establishes a regression model that characterizes the relationship between employee shareholding and executive on-the-job consumption.It aims to explore whether employee's shareholding can play an effective supervisory role,restrict and regulate the on-the-job consumption behavior of senior executives.Through the study,this paper finds that the implementation of employee stock ownership plan can significantly inhibit the level of management's on-the-job consumption.And compared with non-state-owned enterprises,the employee holdings in state-owned listed companies have a greater effect on the in-service consumption of management.The innovation points of this paper are:(1)From the perspective of research,this paper discusses the relationship between employee shareholding and executive's on-the-job consumption from the perspective of supervision.It provides new ideas for reducing the level of on-the-job consumption of corporate management;(2)From the research object,this paper discusses the effect of ordinary employee's shareholding on on-the-job consumption.It is an important supplement to the existing literature to pay more attention to management's shareholding;(3)From the literature,this paper is an early article that used empirical methods to study the relationship between executive on-the-job consumption and employee shareholding.The research in this article has enriched the relevant literature.