Research On Motivation And Effect Of China Unicom’s Employee Stock Ownership Plan

The Third Plenary Session of the 18th CPC Central Committee was successfully held in Beijing in 2013.In accordance with the directive spirit of the Party Central Committee,China has begun to carry out comprehensive and deep reform in all walks of life.With the implementation of various documents and policies,ESOP began to be implemented in full swing in China’s state-owned enterprises.China carried out ESOP as early as 30 years ago,but it ended in failure.With the implementation of mixed ownership reform in state-owned enterprises,however this employee stock ownership plan is once again on the stage of history,which shows that it complies with the economic development of today’s era.For the implementation of ESOP,we should not only summarize the experience of the implementation of ESOP,but also learn from the successful cases of foreign countries.As one of the highlights of the mixed ownership reform,ESOP aims to improve the company’s operating conditions and corporate governance structure of state-owned enterprises through ESOP,which is a new force of state-owned capital and of great significance to the development of national economy.As one of the three major telecom operators,China Unicom is the first batch of pilot units in the implementation of the mixed ownership reform in China.The research on the implementation of its ESOP can not only enrich the relevant theories of ESOP in China,but also provide reference and reference for the companies with ESOP in China,which has important theoretical and practical significance.This paper selects China Unicom,one of the three basic communication industry enterprises in China,as the object of this case study.It will use case study and other methods to study the implementation plan of China Unicom’s employee stock ownership plan,and analyze the effect of the implementation of China Unicom’s employee stock ownership plan.After the implementation of the employee stock ownership plan,it will provide financial performance and corporate governance for China Unicom What are the effects of reason.Firstly,this paper introduces the research background and significance of ESOP,and lists the research content and framework.Secondly,the domestic and foreign literature about ESOP is sorted out as the theoretical basis of this study.Thirdly,it analyzes the motivation of the implementation of China Unicom’s shareholding plan,and analyzes the financial performance according to the changes of financial indicators before and after the implementation of the employee shareholding plan.The last chapter mainly summarizes the research and gets relevant enlightenment.This paper compares the performance of ESOP before and after implementation.After a series of research and analysis,the following conclusions are drawn for state-owned enterprises in terms of ESOP: first,expand the proportion of ESOP,make ESOP sustainable,further optimize the company’s equity structure and improve the company’s governance structure;second,formulate reasonable pricing standards,The relatively high standard not only gives the employees a certain share holding preference,but also reduces the risk of state-owned assets loss to a certain extent,forming a long-term incentive effect;third,continue to implement the employee share holding plan,and deepen the reform of mixed ownership.Through this case study of China Unicom’s employee stock ownership,this paper hopes to provide a reference for the subsequent implementation of the employee stock ownership plan in China’s state-owned enterprises,summarize the experience for the implementation of the employee stock ownership plan,promote the long-term implementation of the employee stock ownership plan,and help China’s policy implementation of comprehensively deepening the reform of the state-owned enterprises.