Case Study Of Taige Pharma’s Employee Stock Ownership Plan

With the internationalization of my country’s economic development,the market has become more open and diversified.Modern enterprises optimize their internal governance structure by implementing shareholding system reforms,but at the same time,because the interests of principals and agents are inconsistent,there are many contradictions within the enterprise.Therefore,enterprises have been seeking measures that can optimize the governance structure and reduce agency costs.The employee stock ownership plan has been regarded as a long-term incentive method since it was proposed in the 1950 s.By distributing shares to employees,the employees become shareholders of the company and have certain decision-making rights,thereby improving employee work concentration and loyalty Degree purpose.In the 1980 s,my country introduced the concept of employee stock ownership plans and conducted pilot reforms in many places.However,due to irregular operation procedures,it was eventually stopped by the state.In order to correct the chaos in the industry,the country issued a series of guidelines in 2014 to standardize the relevant processes,so that the employee stock ownership plan has returned to the public’s vision.Against this background,Taige Pharma implemented the first phase of employee stock ownership plan in 2016 and achieved remarkable results.Therefore,this article selects Taige Medical Technology Co.,Ltd.as the research object of the case,starting with the effect and mechanism of the employee stock ownership plan on the listed company,hoping that this case can provide some inspiration and reference for other listed companies in the future.This article selects Hangzhou Taige Pharmaceutical Co.,Ltd.as the research object,first introduces the research background and significance of the employee stock ownership plan,and reviews the research results of the employee motivation plan,implementation methods,and implementation effects..Then this article will summarize the theoretical research and continue to discuss its concepts,types,distribution and management.Then introduce the profile of Taige Pharmaceuticals and the economic environment in which it analyzes the motives for implementing the employee stock ownership plan,and describes the specific implementation plan of the employee stock ownership plan.Then comparatively study the business performance,financial indicators,market response and other company internal data of Taige Pharmaceuticals in the years before and after the implementation of the employee shareholding plan,and compare it with other companies in the same industry,and find that Taige Healthcare has improved through the implementation of the employee shareholding plan.Various financial indicators have improved business performance and received positive feedback from the market.On this basis,this paper deeply analyzes and draws the conclusion that the company directly or indirectly improves the company’s performance through three ways: reducing agency costs,improving capital structure,and incentivizing shareholding employees.Finally,based on the case analysis,the paper concludes that: Taige Pharmaceutical’s employee stock ownership plan has improved the company’s operating performance to a certain extent and achieved good market response.At the same time,the employee stock ownership plan optimized the company’s capital structure and shareholding structure and improved The company’s competitiveness in the capital market.Combined with the case,the enlightenment of the listed company’s implementation of the employee stock ownership plan is provided,which provides a reference for other companies to implement the employee stock ownership plan,which helps other listed companies to formulate more scientific and motivating employee stock ownership plans.