Research On The Mechanism Of Employees’ Shareholding On Business Performance Under The Background Of State-owned Enterprise Reform

Since the Third Plenary Session of the 18 th CPC Central Committee,with the deepening of the reform of mixed ownership in state-owned enterprises,the employee stock ownership plan,which was once stopped,has been opened again.ESOP originated in the United States,and plays an important role in promoting the diversification of corporate ownership structure and improving the level of corporate governance.In the current round of mixed ownership reform of state-owned enterprises,the government clearly proposed that ESOP should be an important measure of mixed ownership reform.In August 2016,the state owned assets supervision and Administration Commission,the Ministry of Finance and the China Securities Regulatory Commission jointly issued the opinions on the pilot implementation of employee stock ownership in state-owned enterprises with mixed ownership and the opinions on several policies for deepening the pilot reform of mixed ownership jointly issued by the national development and Reform Commission and other eight ministries and commissions in September 2018 made relevant provisions on the implementation of ESOP in the mixed ownership reform,This makes the state-owned enterprises have the basis to follow when drawing up the employee stock ownership plan.Since then,a number of state-owned listed enterprises began to set foot in employee stock ownership plan,setting off a wave of employee stock ownership boom.In the current situation,whether the implementation of ESOP can promote the process of mixed ownership reform,whether it can achieve the role of improving enterprise performance,and how to affect the performance,it is very meaningful to explore these issues.This paper adopts the method of case study to study the effect mechanism of ESOP on enterprise performance under the background of mixed reform by using the ESOP of SAIC.First of all,this paper studies the theoretical basis of ESOP and relevant literature,and finds that the domestic and foreign scholars have different conclusions on the effectiveness of corporate performance.Then,this paper reviews the development of ESOP in China and the new characteristics of ESOP in the new era,and analyzes the mechanism of ESOP on SOE performance theoretically.Then,this paper introduces the background,motivation and specific content of the ESOP implementation in SAIC,and then analyzes how it affects the performance from four aspects of corporate governance,corporate operation,financial performance and market effect.Finally,through the analysis methods of financial indicators,EVA analysis and event study,the performance of SAIC before and after the implementation of ESOP is tested.This paper draws the following conclusions:(1)the implementation of ESOP can improve the degree of equity diversification of state-owned enterprises,and reduce agency costs,so as to improve corporate governance performance;(2)the implementation of ESOP can increase the recognition and loyalty of employees to enterprises,reduce the human cost of enterprises,and encourage employees to actively participate in innovation activities.(3)the implementation of ESOP can improve the financial situation of state-owned enterprises,promote the profitability,operation ability,debt paying ability and growth ability of state-owned enterprises,and effectively promote the growth of financial performance;(4)the announcement of ESOP sends a positive signal to the market to promote the increase of stock price,thus improving the market performance.The contribution of this paper lies in combining with the background of the mixed reform of state-owned enterprises,and at the same time,from the four dimensions of corporate governance,corporate operation,financial performance and market effect,it further expands the research perspective.The above conclusions provide practical reference for the implementation of ESOP in other state-owned enterprises and the analysis of problems in the pilot process of ESOP by relevant departments,and provide case support for the theoretical research of ESOP under the background of mixed reform in China.