Research On The Employee Stock Ownership Plan And Its Implementation Effect Of LAOBAIGAN LIQUOR CO.LTD

ESOP originated in the United States as an important part of modern corporate governance system.Although the ESOP in China started late,its development speed is very fast,especially in recent years,the improvement of relevant systems and the promotion of relevant policies,so that ESOP has a better development.On November 12,2013,the 18 th National Congress of the Communist Party of China put forward the decision of the CPC Central Committee on several major issues of comprehensively deepening reform,actively developing the reform of mixed ownership,allowing mixed ownership economic entities to implement employee stock ownership,and forming community of interests of capital owners and workers.This shows that under the guidance of the policy,ESOP has ushered in a vigorous development stage in China.Many listed companies began to implement employee stock ownership plan,which opened a new chapter in the history of enterprise development.ESOP plays an important role in promoting business performance,improving corporate governance structure and stimulating employees' enthusiasm.Therefore,this paper studies the ESOP of state-owned listed companies in China,hoping to make a contribute to implement the ESOP.This paper takes LAOBAIGAN LIQUOR CO.LTD as the research object,focusing on the implementation effect of LAOBAIGAN LIQUOR employee stock ownership plan.LAOBAIGAN LIQUOR issued the draft of ESOP on December 1,2014,and form ally implemented in December 2015.The duration of LAOBAIGAN LIQUOR employee stock ownership plan is 48 months,and the lock-in period is 36 months.LAOBAIGAN LIQUOR is the first state-owned listed liquor enterprise to carry out employee stock ownership plan,which is more representative in liquor enterprises.Its implementation methods and development situation can be used for reference for future liquor industry reform.Based on the analysis of the implementation background,implementation motivation and implementation plan of LAOBAIGAN LIQUOR employee stock ownership plan,this paper focuses on the analysis of the implementation effect of LAOBAIGAN LIQUOR employee stock ownership plan.Firstly,the event research method is used to analyze the short-term and long-term market reaction before and after the implementation,and to study the promotion effect on the stock price,employee wealth and the interests of the enterprise stakeholders;Finally,the financial index method is used to analyze the impact on the financial situation.At the end of this paper,the shortcomings of the employee stock ownership plan of LAOBAIGAN LIQUOR are put forward,and the corresponding countermeasures are put forward.The experience and lessons of implementing the employee stock ownership plan of LAOBAIGAN LIQUOR are summarized in order to provide some reference for other liquor enterprises.This paper finds that the implementation of ESOP does promote the rise of stock price,increase of employees' wealth and maximization of stakeholders' interests,improve corporate governance structure,improve corporate governance efficiency,reduce agency costs,and improve the market competitiveness of enterprises in the liquor industry,as well as improve the financial situation of LAOBAIGAN LIQUOR Effect.By tracking the implementation process of the employee stock ownership plan of LAOBAIGAN LIQUOR,this paper gets several inspirations: enterprises should attach importance to the right of employees to participate in corporate governance;it can increase the follow-up plans of employee stock ownership plan,such as extending the duration of employee stock ownership plan properly,implementing multi period employee stock ownership plan,etc.so as to achieve long-term incentive effect and promote the sustainable development of enterprises;The incentive scope of ESOP should be determined according to the characteristics of the enterprise.I hope this paper can provide some reference for other liquor listed companies to implement ESOP.