Research On The Implementation Path And Effectiveness Of Employee Stock Ownership Plan Of State-Owned Financial Enterprises

Since the Third Plenary Session of the Eighteenth Central Committee of the Party in 2013,the Party Central Committee and local governments at all levels have attached greater importance to the reform and development of State-owned enterprises,and the spirit of the meeting mentioned that ESOP is employee stock ownership plans again on the historical stage to push China’s state-owned enterprises to implement employee stock ownership plans in the context of mixed ownership reform.In2014,the State Council issued "Several Opinions on Further Promoting the Healthy Development of Capital Markets," explicitly stating that "listed companies are permitted to implement employee stock ownership in a variety of methods in accordance with the law." In 2016,the 18 th National Congress of the Communist Party of China once again emphasized the importance of mixed reform for the reform of state-owned enterprises.Subsequently,the China Securities Regulatory Commission,the Ministry of Finance and the State-owned Assets Supervision and Administration Commission,among others,issued Opinions on the Pilot Implementation of Employee Ownership in State-owned Mixed Ownership Enterprises.In the reform of state-owned enterprises,employee stock ownership plan has been endowed with greater expectations and mission to improve employee motivation,optimize the ownership structure of enterprises,promoting the flow of factors of production and operation,and optimizing resource allocation.China’s implementation of employee stock ownership plan has been repeated many times,across the two historical periods of multinational enterprise shareholding system transformation and mixed system,some scholars believe that it has a wide range of merit,while some scholars believe that its role in improving the performance of enterprises has little effect,more research is needed to demonstrate its specific role and feasibility.This paper selects a case study of China Merchants Securities Co.Ltd.a leading enterprise in the securities industry under the capital service industry and a representative market,adopts a combination of case analysis and literature review,first introduces the research background and significance,content and methods and innovation points,and explains the implementation motivation,implementation path and implementation effectiveness of the employee stock ownership plan,and sorts out and summarizes the comments.Secondly,the concept of relevant subjects is defined and theoretically described.Then,the case company and its employee stock ownership plan are introduced,including the business and industry status of China Merchants Securities,the implementation background,process,content and design characteristics of the employee stock ownership plan.Thirdly,the case is analyzed,starting from three major sectors,one of which is the impact path and effect of market effectiveness,including long-term and short-term markets;Second,the impact path and effect of financial effectiveness,including EVA indicators and traditional four financial indicators for measurement;Third,the impact path and effect of non-financial effectiveness include the cost of corporate governance agency,the R&D input and output of enterprise innovation,the composition development of enterprise employees and the analysis of return on investment of human capital,and derive the mechanism relationship between the motivation,path and effectiveness from the three major sectors.From the research on employee stock ownership plan of China Merchants Securities,the overall conclusion is drawn,and it is found that its employee stock ownership plan has certain positive effect incentives.The implementation motivation comes from talents,strategies,policies and equity structure,and the implementation improves corporate performance by forming a number of mechanisms to optimize internal governance,and the implementation results have obvious reflection on the capital market,and the short-term effective but long-term limited financial performance incentive effect has promoted corporate governance,enterprise innovation and the development of corporate employees as a whole.The feasibility and enlightenment that needs to be improved are used to provide some reference for other state-owned enterprises that may want to implement employee stock ownership plans,supplement the "bridge" between their motivation and performance,seek the path mechanism of influence,and may contribute to the research of state-owned financial enterprises to implement employee stock ownership plans.