Research On Boya Bio ESOP And Corporate Performance

Employee shareholding system originated in the 1870 s,which refers to giving employees the right to subscribe for shares,letting them hold corporate shares,and using the proceeds of stocks to encourage employees to work enthusiasm and optimize corporate governance institutions.The specific implementation of employee stock ownership in my country started late and was suspended in 1998.Since then,relevant domestic companies have begun to implement employee stock ownership plans.But existing scholars have not yet reached a consistent conclusion on the impact of employee stock ownership plan on corporate performance.At the same time,due to insufficient laws and regulations related to employee stock ownership in China,the company implemented the standardization process that can be referenced in the process does not have detailed provisions.If the research finds that the employee stock ownership plan can bring beneficial effects to the business operation,it will promote the enterprise to actively carry out the employee stock ownership plan,and in practice,continue to overcome difficulties and step out of the characteristics with Chinese characteristics development route.This article uses a case study to analyze the impact of employee stock ownership plans on corporate performance,and chooses Boya Bio as the research object.First,it briefly introduces Boya Bio,focusing on the implementation process,implementation model,and basics of its employee stock ownership plan.Principles and participants,in order to get general understanding of the shareholding of Boya Bio employees.Secondly,this article selects the index analysis method and Volvo scoring method to do specific research on corporate performance,and selects 14 indicators of Boya Bio's profitability,operating capacity,debt repayment ability and development capacity to analyze Boya Bio's 2016 employee shareholding plan.In order to make the research conclusion more objective and comprehensive,the company's business performance changes,and the unnamed creatures and Shutaishen biological of the same size as the research enterprise are selected for industry comparative analysis.According to the data,it shows that Boya's profitability after implementing the employee shareholding plan Earnings per share have increased significantly,and Boya Bio's earnings per share have been at a relatively high level in comparison with the industry.According to the analysis of indicators,it can be seen that the company's operating capabilities have also beengreatly improved.The development capability indicators that investors have paid attention to have been steadily increasing in recent years.According to the Volvo score analysis,the rating of Boya Bio has increased in recent years,reaching 2.37 in 2018 Minute.Comprehensive analysis has concluded that employee stock ownership plans can improve corporate performance.Finally,combined with the previous analysis,it is concluded that the employee stock ownership plan is conducive to optimizing corporate performance,strengthens corporate governance,and helps shareholding employees to truly enter corporate management decisions.Subsequently,the company and relevant departments were advised to establish supporting performance evaluation mechanisms,increase employee shareholding ratio,expand employee shareholding scope,and improve laws and regulations on employee shareholding system in my country.