Study On The Influence Of Employee Stock Ownership Plan In Baihua Village Of Xinjiang On Company Performance

After the Third Plenary Session of the 18 th CPC Central Committee,a new round of mixed-ownership reform kicked off.The employee stock ownership plan,as an integral part of the mixed-ownership reform,resumed its journey after being suspended for many years.The plenary session encourages the full implementation of employee stock ownership,to inject new vitality into the enterprise,fully mobilize the enthusiasm,initiative,and creativity of enterprise employees,so as to boost enterprise performance,optimize governance structure,and promote enterprises to become stronger,better,and bigger.After the enactment of “ Guiding Opinions on the Pilot Implementation of Employee Stock Ownership Plan in Listed Companies” by China Securities Regulatory Commission in 2014,listed companies have implemented employee stock ownership,but the majority of the results have deviated from expectations.In terms of theoretical research,there have occurred differences between Western scholars and domestic scholars: the research of Western scholars shows that employee stock ownership plans can engender a positive impact on company performance,while some domestic scholars believe that employee stock ownership plans can only improve short-term performance or cause a negative impact on performance.Based on this,it is of great necessity to explore the impact of employee stock ownership plans on enterprise performance.In this thesis,through the review of existing relevant literature research materials,combined with the current background of the listed company ' s implementation of employee stock ownership plan,Baihuacun,an old listed company of Xinjiang is selected as the analysis object.First,the employee stock ownership,the effect mechanism of employee stock ownership on enterprise performance are theoretically introduced;then,the path of employee stock ownership plan ' s effect on the performance of Xinjiang Baihuacun is specifically analyzed from three aspects: market effect,corporate governance and corporate management;then,the corporate performance before and after the implementation of the employee stock ownership plan is tested through financial performance and non-financial performance;finally,the problems in the employee stock ownership plan of Baihuacun are summarized and suggestions for improvement are proposed.Through analysis and research in this thesis,it is believed that employee stock ownership can improve corporate performance by delivering positive signals,forming a diversified shareholding structure,alleviating principal-agent problems,and strengthening employee incentives.However,this incentive effect has been weakened and made unsustainable due to problems in the plan design in the actual implementation process.Therefore,in addition to the wide support of employees required for the implementation of employee stock ownership,enterprises should also consider internal and external factors,scientifically formulating implementation plans for employee stock ownership plans,and finding out when the stock ownership plan should beimplemented.What's more,relevant departments should also pay attention to maintaining market stability and improve market system.