Research On Incentive Effect Of Employee Stock Ownership Plan In Science And Technology Industry

Since the CSRC issued guidance on the pilot of Employee Stock Ownership Plans in 2014,the number of enterprises implementing the employee stock ownership plan system has gradually increased.Under the macro background of "rejuvenating the country with science and technology" and "strengthening the country with talents",the number of science and technology enterprises in China is also increasing rapidly,and to promote R&D innovation and long-term development of such enterprises,we should give full play to the role of high-quality human resources.The implementation of the employee stock ownership plan system is one of the effective ways to optimize the company’s human capital and enhance the company’s innovation ability.How to establish a reasonable employee stock ownership plan system and give full play to its incentive role to help the development of enterprises is a question worth exploring.Based on this background,this paper uses basic theories such as human capital theory,two-factor economic theory and expectation theory to explore whether the implementation of employee stock ownership plans can play its incentive role in technology-based enterprises,and if so,what kind of intermediary path can achieve the incentive effect.The author selects Edan Instruments in the medical device industry as a case company,first discusses its motivation and scheme design for implementing the employee stock ownership plan system,secondly analyzes the market response and changes in business performance after the implementation of the employee stock ownership plan,then explores the intermediary path that causes this change,and finally makes suggestions for the implementation of employee stock ownership plan for technology-based enterprises.The results of this paper show that:(1)The employee stock ownership plan has a significant positive incentive effect on technology-based enterprises,which is manifested in a good market response in the short term and improved business performance in the medium and long term.(2)The ways in which the employee stock ownership plan produces incentive effects are: optimizing corporate governance,enhancing corporate innovation capabilities,and enhancing employee effort and stability,and the effects of different paths are different.(3)For technology-based enterprises,the employee stock ownership plan has a greater incentive effect in facilitating the innovation ability and promoting the positive behavior of employees,and the incentive effect is mainly reflected in the obvious improvement of the profitability and growth ability of the enterprise.The possible contributions of this paper are: First,there are fewer relevant studies on the incentive path of employee stock ownership plans,and there are fewer relevant case studies,this paper takes Lee Bon Instruments as an example to discuss the development of enterprises after the implementation of employee stock ownership plans,and to a certain extent,enrich the literature in this field.Second,focusing on technology-based listed companies,focusing on the application effect and incentive path of China’s employee stock ownership plan in technology-based enterprises,it has certain reference significance for other companies in the industry.The shortcomings of this paper are: first,this paper is a single case study,and it is difficult to exclude the impact of other factors of the company on the performance of the enterprise,which may affect the final research conclusion;Second,the data of the case companies are all from the company’s annual reports and announcements,and some information disclosure is insufficient,resulting in some in-depth analysis.