Employee Stock Ownership Plan,R&D Input And Operating Performance In High-tech Enterprises

In China,Employee Stock Ownership Plan was introduced in 1990s.However,due to the lack of reasonable and effective management and supervision,the implementation of ESOP was chaotic,which even caused the loss of state-owned assets.Finally,it was suspended by the State Council.In June,2014,the China securities regulatory commission issued "The Guidance on The Implement of Employee Stock Ownership Plan in the listed company."(Hereinafter referred as the"Guidance")marks the restart of employee stock ownership plan in China.The Guidance has made a clear specification of the employee stock ownership plan,including the basic principles,the source of capital,the source of stock,the lock-up period of and so on.It is beneficial to practice the employee stock ownership plan legally and compliantly in the listed company,protecting the rights of all stakeholders and ensuring to implement the employee stock ownership plan smoothly.The biggest difference with the equity incentive is that the employee stock ownership plan gives all employees the right to subscribe for the company's shares and become the owner of the company's surplus profits,while the objects of the equity incentive are managers and major staff.Therefore,the employee stock ownership plan has a wider range of shareholders,which can increase employees' sense of belonging to the company and improve their loyalty.Employees are indispensable human capital for the company's operation and development.Their enthusiasm and efficiency affect the company's operation performance.Therefore,the establishment of reasonable and effective employee incentive plan is of great significance to the benign development of the company.But the influence direction of ESOP on operation performance is controversial and the path between ESOP and business performance is not clear.Therefore,it is of great theoretical and practical significance to discuss how ESOP affects the company's operation performance and whether it can successfully motivate employees,stimulate their creativity and improve the company's operation performance.As of 2018,there are 769 listed companies that have successfully implemented ESOP,most of which are in industries with fierce competition and high R&D requirements.Therefore,it can be found that employee stock ownership plan is more attractive to innovation-oriented enterprises.Employees are the main contributors to the company's innovation.Moreover,due to the uncertainty risks and benefits of research and development,it is more necessary for employees to have the same goal and interests as the company owners,so as to reduce the self-interested behavior of employees.As an incentive plan,ESOP can realize the benefit and risk sharing between the company and employees.However,at present,few studies on the implementation effect of ESOP have refined the industry,nor have they studied the impact path of ESOP on business performance from the perspective of R&D investment.Based on examining the impact of ESOP on operation performance,this paper introduces research and development investment as a new perspective to study the implementation effect of ESOP provided by high-tech companies.In view of this,this paper takes high-tech enterprises listed in Shanghai and Shenzhen a-share market from 2014 to 2018 as sample companies to study the impact path and effect of ESOP on operation performance.The research finds the following conclusions:(1)The implementation of ESOP can promote the business performance of high-tech enterprises;(2)High-tech enterprises implementing ESOP invest more in research and development,which means ESOP can stimulate employee innovation;(3)The increase of R&D investment can improve the company's operating performance,and R&D investment plays an intermediary effect between ESOP and operating performance.That is to say,the implementation of ESOP can increase the company's R&D investment and further improve the company's operating performance.(4)For high-tech enterprises implementing employee stock ownership plan,the higher the proportion of non-executive stock ownership is,the higher the R&D investment is.Based on the research conclusions,this paper puts forward the following suggestions:Firstly,it is suggested that ESOP be promoted in high-tech enterprises.At present,ESOP is in its initial stage in China,and the effects of ESOP may vary in different industries.The conclusions of this paper prove that ESOP has obvious effects for high-tech enterprises.Secondly,as accelerating the promotion of ESOP in high-tech enterprises,corresponding supporting measures must be taken.For example,the supervision should be strengthened in the implementation process of ESOP.Itis essential to standardize information disclosure and establish a performance appraisal system linked to ESOP,so as to further improve ESOP and strengthen the positive effect of ESOP on business performance.The possible innovation of this paper lies in the following:first,since there is no research on the relationship among ESOP,R&D investment and operating performance.Therefore,this research may enrich the existing equity incentive literature.Second,at present,there are conroversial conclusions between the relationship of ESOP and operating performance.Considering that there are many factors affecting the performance of the company,the effects of ESOP on business performance may be weakened.This paper introducesR&D as a intervening variable,the mechanism of the action of ESOP on corporate performance can be explored.Provide the ESOP a definite aim and a reference direction for the implementation of the ESOP.