Research On The Motivation And Effect Of The Implementation Of ESOP In Listed Companies

Since 2012,with the introduction of multiple employee incentive related documents by the China Securities Regulatory Commission,ESOPs have gradually become popular with listed companies and recognized by the capital market,and have gradually shown the characteristics of multi-period normalized implementation.However,in the specific practice,the implementation of a large number of ESOPs has not been effective and has fallen into a serious situation of floating losses,which deviates from the original intention of the plan design.Based on this,this thesis takes "multi-period" as the starting point,and selects EVE Energy Co.,Ltd,a leading lithium battery company that has implemented ESOPs many times,as the research object to study the implementation motivation and effectiveness of nine-phase ESOPs of EVE from 2015-2022.Firstly,this thesis collates and summarizes relevant literature studies by domestic and foreign scholars on the implementation motivation,implementation effectiveness,and influencing factors of ESOPs,defines the concepts of ESOP,equity incentive,and so on,and takes the two-factor economic theory,principal-agent theory,and human capital theory as theoretical foundations to provide theoretical support for case analysis.Secondly,this thesis sorts out the design and progress of multi-period ESOPs of EVE,laying the foundation for subsequent motivation and effect analysis.Thirdly,based on external national policies,industry environment,internal enterprise development needs,and other factors,this thesis explores the implementation motivations of the multi-period ESOPs for EVE,finding that the external motivations include utilizing policy support opportunities,responding to industry competition patterns,and the internal motivations include transmitting positive signals,binding core employees,and improving corporate governance.Then,this thesis starts from three dimensions of market performance,financial performance,and non-financial performance,and uses the event study method,financial index method,data envelopment analysis method and other evaluation methods to study the implementation effect of the multi-period ESOPs of EVE from multiple perspectives.The thesis finds that it can be seen that the implementation effect of the multi-period ESOPs of EVE has basically met expectations and can play a role of "binding and sharing interests".Finally,based on the above research results,this thesis recommends that the implementing entity optimize and adjust the ESOPs in terms of incentive scope,incentive period,and funding sources,and that the regulatory department consider strengthening the external environment construction of ESOPs,and continue to improve relevant laws and regulations.Based on specific case studies,on the one hand,this thesis analyzes the implementation motivation and effect of ESOPs of EVE from a long-term perspective,with a view to providing a reference for the implementation of ESOP in the later stage of the company.On the other hand,this thesis can provide reference for listed companies in the same industry to standardize ESOPs in the future,with the aim of reducing the possibility of falling into floating losses,establishing and improving the long-term incentive mechanism of the company.