Research On Financial Performance Of GEM Listed Companies Under ESOP

The employee stock ownership plan(ESOPs)originated from the western countries in the 18 th century.After years of practice and development,it has been proved to be an effective incentive method.The employee stock ownership plan combines the labor force of employees with the assets of the enterprise,so that the personal interests of employees are consistent with the collective interests of the enterprise,so as to enhance the sense of belonging and stimulate the enthusiasm of employees.China's employee stock ownership plan started late and its development process is tortuous.In the new era,the third plenary session of the 18 th CPC central committee affirmed the enthusiasm of the employee stock ownership plan(ESOPs)in several issues of comprehensively deepening the reform.Especially after the CSRC issued the guidance in 2014,many enterprises actively promoted the implementation of the employee stock ownership plan.Most of the GEM listed companies in China are engaged in the related businesses of high-tech industry,which have high growth potential and obvious characteristics of technological innovation.However,due to the short establishment time and insufficient cash flow,high-tech enterprises cannot pay high salaries.Therefore,more and more GEM listed companies adopt the employee stock ownership plan as a supplement to the traditional compensation mechanism.In this paper,the existing relevant research and theoretical basis are sorted out to study the impact of the implementation of the ESOPs on the financial performance of enterprises from the theoretical perspective.ZM technology company,an enterprise with the characteristics of GEM listed companies,was selected for case analysis.Combining with the characteristics of ZM technology company,the paper analyzes the motivation of implementing the employee stock ownership plan,and the results show that ZM technology company has a strong motivation to implement the employee stock ownership plan in order to improve the core competitiveness of the enterprise.Comb the main contents of ZM technology employee stock ownership plan,and analyze the path of employee stock ownership to its financial performance;The analysis shows that the implementation of the employee stock ownership plan of ZM technology company will affect its financial performance from the aspects of ownership structure,internal governance,enterprise employees and R&D activities.This paper analyzes the financial performance of ZM technology company after the implementation of the employee stock ownership plan through event analysis.The results show that the event of the employee stock ownership plan can improve its financial performance in a short term,and the first phase is better than the second phase.Secondly,appropriate financial indicators were selected to analyze the changes of financial performance indicators before and after the implementation of the ESOPs by ZM technology.The results showed that the financial performance of ZM technology company after the implementation of the ESOPs had a certain improvement compared with that before the implementation.This paper finds that the implementation of the employee stock ownership plan by ZM technology company will improve the work enthusiasm and corporate responsibility of core employees and create more value for the company,thus having a positive impact on the financial performance of the company.At last,the author draws lessons from relevant experience,extends the thinking of case analysis and draws corresponding enlightenment,so as to provide reference for enterprises to implement the employee stock ownership plan.