Research On The Motivation And Effect Of Employee Stock Ownership Plan Based On Value Sharing

Employee stock ownership plan has been favored by major domestic listed companies since it was introduced into C hina in 2014,but the implementation effect of many companies in recent years has not been satisfactory after the implementation of employee stock ownership plan.Therefore,employee stock ownership plans have been a key focus of company governance.With the development of Chinese-style modernization,more and more companies have started to focus on their employees as one of the forces driving the development of the company,who can share the benefits from the value added by the company in the growth process together with the shareholders,executives,creditors and other stakeholders of the company.So companies gradually began to focus on value sharing with employees,no longer simply around the product to maximize profits,but to combine human resources and enterprise production technology to build a value-sharing mechanism,and then mobilize the initiative,enthusiasm and innovation of employees to maximize the value of the enterprise,and ultimately to maximize the interests of the enterprise.Therefore,this thesis integrates employees’ interest demands into the process of corporate value sharing,based on value sharing theory,stakeholder theory,Signal transmission theory and sharing economy theory,the three employee stock ownership plans implemented by Venustech Group Inc during 2015-2022 were selected for the study.The thesis firstly compares the relevant literature and explains the background of the selected topic and the significance of the research;Secondly,to study the antecedents,configuration and form of value sharing of Venustech Group Inc,to understand the driving factors and motivation of implementing three phases of employee stock ownership plans under the value sharing model,and to analyze and compare the reasons for the different funding sources of the employee stock ownership plans implemented by Venustech Group Inc at different stages;Finally,using the case study method,we analyze the implementation effect of Venustech Group Inc’s plan from four perspectives: market response,learning and growth dimension,financial performance effect and stakeholder dimension,and summarize and conclude the resulting research findings.Focusing on maximizing corporate value,this thesis focuses on analyzing the corporate benefits of employee stock ownership plans under the value-sharing model.The findings of the study indicate that: First,Venustech Group Inc’s employee stock ownership plan has realized the sharing concept of ‘value creation’ between the company and employees;Second,Venustech Group Inc’s employee stock ownership plan has promoted the development of the co mpany,with good debt servicing capacity and improved profitability;Third,Venustech Group Inc’s implementation of the employee stock ownership plan has sent positive market signals and increased investors’ confidence in investment;Therefore,the employee stock ownership plan allows the company to establish a value and benefit sharing relationship with its employees,which has an obvious positive incentive effect on enhancing corporate value creation and provides a reference for enterprises to try out the value sharing model to increase employee benefits in the new economic and social form.