A Study On The Economic Consequences Of Implementing The Employee Stock Ownership Plan Of Goerthk Corporation

The implementation of employee shareholding plans in China’s listed companies came relatively late.After the China Securities Regulatory Commission issued guidelines for the pilot implementation of employee shareholding plans for listed companies in 2014,Chinese listed companies truly embarked on the path of implementing employee shareholding plans.In theory,when employees receive shares,they will perform their job duties well,and their enthusiasm and creativity will be fully stimulated,helping the company achieve the specified performance conditions,stabilizing the stock price,and allowing employees to smoothly unlock their shares,sell and hold them to obtain returns.The implementation of employee shareholding plans is a win-win situation for both employees and companies.The implementation of employee shareholding plans undoubtedly promotes the improvement of company performance and the development of company operations through the motivation of talents,but there is still controversy over the incentive effects of employee shareholding plans.Many companies have faced the phenomenon of floating losses after implementing shareholding plans,and even been ordered to stop.However,factors that affect business development and stock prices are varied and complex,and blanket denials of the economic consequences of employee shareholding plans are not appropriate.In order to verify the impact of employee shareholding plans on the economic consequences of companies,enhance confidence in employee shareholding plans among regulatory agencies,companies and investors,this article selects a typical enterprise that has implemented employee shareholding plans: Goer Tek Inc.,a high-tech private company,examines the economic consequences of its implementation.Firstly,the design background and theory of employee shareholding plans are explained,and a comprehensive theoretical analysis is used to demonstrate the positive impact employee shareholding plans can have on economic consequences.Secondly,the general situation and industry background of company are introduced,and the background and motivation for the implementation of employee shareholding plans are explained.Then,the plans for each shareholding period are introduced,and their respective characteristics,implementation processes and results are summarized.In terms of the specific impact on economic consequences,this article studies the three aspects of corporate governance,company performance,and enterprise innovation,and hopes to provide a more comprehensive summary of the economic consequences of the implementation of employee shareholding plans for the case company.By analyzing the changes in governance,performance,and innovation of Goer Tek Inc.before and after the implementation of employee shareholding plans,and comparing it with ten other companies with the same market capitalization in the industry,it is confirmed that the implementation of employee shareholding plans can have a positive impact on a company’s economic consequences.