Research On The Implementation Effect Of TGOOD Employee Stock Ownership Plan

At present,China is undergoing industrial transformation and upgrading.Hightech enterprises,as an important support for industrial transformation and upgrading,are of great significance to the improvement of comprehensive national strength.The characteristics of high growth and high technology make how to attract and retain talents,reduce the cost of entrusted agents and increase the enthusiasm of employees become the main problems that high-tech enterprises need to solve.ESOP has gradually appeared in high-tech industries due to its long-term incentives.The employee stock ownership plan of our country has not yet formed uniform and standardized operating rules,and the study of its implementation effect has not yet formed a unified conclusion.TGOOD is the first high-tech enterprise in China to implement an ESOP,the research and analysis aims to enrich relevant theories and provide a certain reference for the improvement of the ESOP incentive mechanism and its implementation in China.The paper first sorts out the relevant literature at home and abroad,and finds that most scholars are more concerned about the impact of ESOP on financial performance,and have not yet reached a consistent conclusion.The paper adds non-financial performance analysis and market response analysis on this basis.Secondly,the thesis introduces the implementation background,implementation plan and program features.Then,the paper analyzes the implementation effect of TGOOD ESOP from three perspectives: In terms of financial performance,the paper selects multiple financial indicators that can reflect the company's financial performance,and conducts a longitudinal comparative analysis of the values before and after the implementation of the ESOP,as well as a horizontal comparative analysis with the industry average over the same period;In terms of non-financial performance,the paper conducts a comparative analysis of TGOOD human capital and R & D innovation capabilities;In terms of market response,the thesis starts from the perspective of stock price changes and cumulative excess returns.Finally,based on the above analysis,the enlightenment about perfecting the ESOP incentive mechanism is drawn.The paper draws the following conclusions through analysis: First,in terms of financial performance,TGOOD solvency,operating ability and growth ability have all improved to varying degrees after the implementation of the ESOP,but the profitability improvement effect is not good,the analysis of the paper is due to the ESOP has not set the exercise conditions and the new business development of TGOOD has not yet entered the profit stage.Secondly,in terms of non-financial performance,the educational structure and professional structure of TGOOD employees have improved significantly after the implementation of the ESOP.R & D personnel,R & D investment and R & D results have also increased significantly.Third,in terms of market response,the market responded positively to the announcement of the first phase ESOP,and negatively responded to the announcement of the second and third phase ESOP.The analysis of the thesis is due to the decline of the stock market and the downturn of the secondary market when the second and third phases of employee shareholding plans were launched.Based on the research and analysis of TGOOD employee stock ownership plan,the paper draws three enlightenments on improving the incentive effect of ESOP: first,pay attention to ESOP and set a reasonable shareholding ratio;second,adequate investigate and evaluate and choose the right time for implementation;third,set exercise conditions and increase performance evaluation.