Analysis Of The Impact Of Eastern Shenghong Employee Stock Ownership Plan On Corporate Innovation Performance

The report of the 20 th Party Congress clearly points out that we must adhere to science and technology as the first productive force,talent as the first resource and innovation as the first driving force,deeply implement the strategy of developing the country through science and education,the strategy of strengthening the country through talent and the strategy of innovation-driven development,open up new tracks in new areas of development,and continuously shape new momentum and advantages in development.As the main body where the innovation strategy is realized,enterprises need the strong support from government departments to promote high-tech enterprises to be oriented to R&D and innovation.As a direct participant in the innovation activities of enterprises,how enterprises can effectively maximize the benefits of talent resources and improve the efficiency of use is the part of enterprises that need to focus on breakthroughs.ESOP,as a new type of incentive policy,allows employees to hold shares or options in the company in a reasonable way and enjoy the right to corporate income and certain business decision-making rights,which realizes the binding of interests between employees and enterprises and forms a long-term The incentive mechanism can effectively attract talents,promote employees’ participation in the process of R&D investment,and promote enterprise innovation and development.Therefore,by studying the influence mechanism of employee stock ownership plan and enterprise innovation,it is of great practical significance to help enterprises improve their innovation ability.Based on the above background,this article explores the degree of association between employee stock ownership system and corporate innovation based on the support of human capital theory,principal-agent theory,incentive theory and golden handcuff theory.The article firstly compares the literature on employee stock ownership and corporate innovation and analyzes the correlation between employee stock ownership and corporate innovation;secondly,it provides a detailed introduction to the concepts and theoretical frameworks related to employee stock ownership and corporate innovation;then it introduces the basic situation of the company and the employee stock ownership plan,and then analyzes the three phases of the employee stock ownership plan implemented by Orient Shenghong and the business situation as the basic data support.We then analyze the motivation for the implementation of the employee stock ownership plan.Focusing on the four perspectives of financing channels,employee perspective,financial perspective,and agency costs,we analyze the degree of association between employee stock ownership and corporate innovation,mainly from the following aspects: financing channels,attracting talent investment,changes in the academic structure of R&D personnel and technicians,R&D capital investment,and innovation output,for the analysis of innovation performance with innovation output as an indicator,mainly including profitability,growth capability,capital structure,and patent application;the agency cost is mainly analyzed through the index of management expense ratio,analyzing the changes of relevant financial and non-financial indexes before and after the implementation of employee stock ownership plan,summarizing the degree of correlation between them,and finally getting the conclusion of the article and putting forward reasonable suggestions.By studying the employee stock ownership plan implemented by Orient Shenghong,the article can draw the following conclusions:(1)Implementing an employee stock ownership plan can alleviate corporate financing constraints,broaden corporate financing channels,and provide sufficient funding sources for corporate R&D activities.(2)The implementation of ESOP can lead to an increase in the level of R&D innovation and innovation results;(3)the implementation of employee stock ownership plan can promote corporate innovation by improving the quality of corporate internal control;(4)the implementation of employee stock ownership plan can realize the binding of interests between employees and the company,attract and retain technical talents and R&D personnel,and play a role in promoting corporate innovation.Through the case study of the employee stock ownership plan of Orient Shenghong,feasible suggestions are made at both government and enterprise levels to provide reference for other enterprises in the industry category to achieve long-term incentive effects and effectively enhance corporate innovation,thus promoting the construction of an innovative country in China.The main contributions of this paper are the following two points: firstly,it enriches the research related to employee stock ownership plan through specific case studies,and also enriches the implementation effect of employee stock ownership plan from the perspective of innovation.Secondly,existing studies mostly focus on empirical studies with large sample data,and there is still a lack of research in the field of private enterprises.This paper proposes relevant policies and suggestions for enterprises through research in the form of case studies,supported by a theoretical framework and by deducing the mechanism of influence between employee stock ownership plans and enterprise innovation,in a way that both enriches the research approach represented by case enterprises and complements the research on private In terms of research approach,it enriches the research approach represented by case companies,and also complements the research on employee stock ownership plans of private listed companies.