Research On The Impact Of Sany Heavy Industry’s Employee Stock Ownership Plan On Enterprise Financial Performance

In the foreign theory and practice,ESOP is usually regarded as a long-term incentive mechanism for enterprises to encourage employees to work harder.Compared with the traditional compensation system,ESOP is more able to motivate employees.Compared with the traditional salary system,ESOP has a stronger incentive effect on employees,so more and more domestic listed companies begin to pay attention to it,which combines the overall interests of the company with the self-interests of managers,and has become the main way to solve the problem of separation of ownership and management rights under different positions.Since the release of the Guidance on the Pilot Implementation of Employee Stock Ownership Plans by Listed Companies issued by the China Securities Regulatory Commission in 2014,many enterprises participated in the ESOP,but they have not achieved the desired results.Therefore,experts have a variety of views on the implementation of ESOP plans,which also shows that ESOP implementation may have different effects on financial performance.Taking the leading domestic machinery manufacturing enterprise SANY as an example,this paper mainly uses the methods of literature study,case study and comparative analysis.According to the SANY’s ESOP implemented respectively in 2016,2020 and 2021,this paper explores whether the implementation of ESOP in SANY has an impact on its financial performance,and puts forward some suggestions for improving SANY’s ESOP.This paper first summarizes and summarizes the research status of the impact of ESOP plans on financial performance at home and abroad,and has a fair idea of the different conclusions and opinions of domestic and foreign scholars on this research.Secondly,this paper defines the relevant concepts and theoretical basis of ESOP and financial performance,which provides the basic theory for the specific analysis of the following cases.Then,this paper introduces the three periods of employee stock ownership plan implemented by the case enterprise "Sany Heavy Industry",It also expounds the process,content and characteristics of the ESOP,and analyzes the motivation of Sany heavy Industry to implement the employee stock ownership plan.Once more,in combination with the contents of the three periods of ESOP plan,this paper analyzed the influence path of Sany’s ESOP on financial performance,and analyze the financial indicators of the profitability,operating capacity,development ability and shareholders’ equity,and longitudinal analysis the impact of ESOP on Sany’s financial performance.Combined with Du Pont’s analysis,this paper makes a horizontal comparison between SANY’s financial indicators and industry average to further verify the positive impact of ESOP.Finally,it is concluded that the implementation of ESOP in SANY has a positive impact on the financial performance,and put forward suggestions to improve its employee stock ownership plan.By study,this paper draws a conclusion: the implementation of ESOP in SANY affects the agency cost,employee structure,research and development ability and employee participation of enterprise,which increases the enthusiasm among employees and strengthens the core competitiveness of the enterprise,which has a positive impact on the financial performance of the enterprise.Moreover,the implementation of ESOP encourages the profitability,operating ability,development ability and shareholders’ rights and interests of SANY to a certain extent.It has the greatest impact on profitability.It is hoped that we can provide effective suggestions to improve the financial performance of SANY,and provide some reference for its future implementation of ESOP.