Research On The Motivation And Effects Of Employee Stock Option Plan By Qiaqia Food

The employee stock option plan originated in the United States and has been used maturely in western countries.However,it started lately in China,and the domestic research on the employee stock option plan system is still in the exploratory stage.In June 2014,the China Securities Regulatory Commission issued the "Guiding Opinions on the Pilot Implementation of Employee Stock Option Plan for Listed Companies"(hereinafter referred to as the "Guidance Opinions").The opinion made strict regulations on the specific design of the employee stock option plan.Since the publication of this opinion,China's listed companies have gradually explored and implemented employee stock option plans.However,compared with western developed countries,the element design and legal protection of the employee stock option system in China are still flawed,and the plan is not perfect in the specific practice of enterprises.In this regard,this article takes Qiaqia Food Co.,Ltd.as an example to specifically analyze the design motivation and implementation effects of its employee stock option plan,hoping to provide reference materials for the implementation of the case to promote the design of the employee stock option plan of China's listed companies.From 2015 to 2020,Qiaqia Food has launched a total of four phases of employee stock option plans.This article takes these four phases as the research object.It first sorts out the domestic and foreign research results and basic theories of employee stock option plan,and introduces the company's basic situation and the content of the employee stock option plans,then analyzes the reasons for the company's continuous introduction of the employee stock ownership plans.Secondly,evaluate the implementation effect of the plan from two aspects: non-financial effect and financial effect.The non-financial effect includes short-term market response,internal governance effect,innovation effect,and employee direct income.The financial effect mainly selects profitability index and growth capability index to analyze the company's profitability and growth.In terms of market response,this article calculates the excess return rate and cumulative excess return rate of the window period around the announcement date of each plan based on the event research method,and evaluates the market response that the plan announcement will bring;in terms of internal governance changes,through management fees observe the changes in agency costs before and after the implementation of the plan;in terms of innovation effects,firstly,through thechange of R&D investment amount and the proportion of R& D investment in operating revenue before and after the implementation of the plan,analyze the change of the enterprise's attention to innovation after the implementation of the employee stock ownership plan,secondly,observe the number of patent applications of the enterprise to analyze the innovation effect;In terms of income,the employee's capital gains and the company's dividend policy during the shareholding period are used to calculate the benefits of employee participation in the plan;in terms of operating performance,this paper mainly observes the financial effect of implementing ESOP from the change of profitability index and growth ability index of Qiaqia Food in 2014-2019.Finally,a comprehensive implementation effect study was conducted to analyze the problems existing in the design of Qiaqia Food employee stock option plan,and put forward perfect countermeasures,and draw relevant revelations: First,the source of holding capital should be diversified and the participation of the plan should be increased;Second,the employee shareholding plan should be regarded as a long-term incentive policy to avoid short-term welfare;third,we must formulate a scientific and rational plan based on external experience and our own reality.