Study On China Employee Shareholding System

The employee stock ownership is a form of enterprise organization with unique characteristics. This organization form relies on and exists in a sort of institutional arrangement, and, accordingly, both the innovative employee stock ownership plan(ESOP hereafter) in the late 18 th century in developed countries and the employee stock ownership system(ESOS hereafter) in countries, such as the United States, in 1970's, did open up a new field in exploring organizational form of modern enterprises. Since 1980's, china's ESOS has experienced a more than 30-year history of introduction, development, promotion and change, and, meanwhile, made due contribution to the exploration of enterprise ownership forms and economic development after China's reform and opening-up. After suffering many problems in the process of implementation, China's ESOS went into a stagnant period from 2008 to 2013, and central and local governments at different levels begun to rethink or shelf this controversial system. However, based on the refined experiences and recognition for the actual results, the Third Plenary Session of the 18 th Central Committee decided to implement ESOS in mixed-ownership enterprises, and also required innovation, including model innovation, institution innovation and scale innovation. As a result, it is of great value to study China's ESOS.This paper focuses on China's employee stock ownership and its innovation, and uses empirical statistic methods to conduct a systematic research into different aspects of China's ESOS, such as theoretical bases, evolution history and existing problems, and so on. Furthermore, this paper also raise innovative plan for China's ESOS on the ground of connecting China's concrete practice and developed countries' experience.Firstly, research literature and theoretical basis of ESOS in China and abroad are summarized and analyzed. In contrast to traditional research in western economics, China's research of ESOS is a combination of many subjects, and takes on cross-disciplinary traits. Accordingly, many research results are obvious multi-discipline intersection. After 1980's, China's scholars went into this field and mainly focused on the evolution path of ESOS, including the history, theoretical basis, practical pattern and concrete institution arrangement, etc., and achieved quite a lot from different prospects. However, there are still many shortcomings, such as the lacks of data support, empirical results and necessary depth. This paper believes that theoretical basis is the necessary support to the existence of ESSOS and the rationality of its development, and lays the solid foundation for ESOS's acceptance and recognition. In the past, former scholars have suggested and summarized a dozen of theories relevant to ESOS, and this paper primarily concentrates on value theory, principle-agent theory and human capital theory.Secondly, China's ESOS has been analyzed from institutional level, and the main points are: 1. the change of China's ESOS, including principles, methods and process, etc.; 2. the status quo of China's ESOS; 3. existing problems, covering the unclear state of stock ownership, incomplete laws and regulations, unreasonable corporate governance, unsound stock trading system and insufficiency of corporate value recognition, etc.; 4. The reasons of problems, namely, inadequate practice, insufficient institutional research, incomplete laws and regulations and the lack of corporate culture, etc.. In order to study and analyze China's ESOS empirically, this paper selects typical cases, goes deeply into micro research in terms of corporate ownership structure, constitutional agreements of employee stock ownership and relevant accidents within companies implementing ESOS, which can be quite helpful to rich the basic material of China's ESOS research.Thirdly, the results from China's listed companies implementing ESOS are evaluated and analyzed through empirical economics means. Based on test results from multiple perspectives, such as corporate governance, operating performance, motivational system, senior executive resignation and the market response, etc., it is obvious that ESOS in listed companies has significant governance effect, motivational effect and wealth effect. Moreover, these general conclusions by means of empirical research are able to provide data-supporting policy suggestions to the further refinement of China's ESOS.Fourthly, ESOS in developed countries has been analyzed. This paper introduces laws and regulations, institution design and arrangement, institutional orientation and culture, etc., and argues that complete laws and regulations, financial supporting system and corporate governance improvements should be used for reference, which bears implications to refine China's ESOSLastly, innovative methods and policy suggestions are proposed, and include the refinement of laws and regulations regarding employee stock ownership, improvements of employee stock ownership plan, completion of ESOS trading system and establishment of corporate governance in accordance with ESOS, and so on. Furthermore, these methods and suggestions are based on theoretical basis and practice research, and aim to be actually innovative and visionary.