Research On Employee Stock Ownership Plans Of Listed Companies Based On Boya Bio-pharmaceutical Co.,Ltd

The Third Plenary Session of the 18 th Central Committee of the Communist Party of China made it possible for all the capital,technology,labor,management and knowledge to flourish and play a more important role in the development of economic.And allowing the implementation of ESOPs in the background of mixed ownership economy.The nature of the employee holding plan is to let the company employees hold the company's stock so that their own economic interests and the future development of enterprises are closely combined and then forming a fate community.In this system arrangements,the enthusiasm of the staff can be improved,so as to create greater value for the company.Employee Stock Ownership Plan(ESOPs)is widely used in mature capital markets represented by the United States and most companies in the United States have implemented employee holdings.The development of China's ESOPs has been full of twists and turns.But with the introduction of some related regulating files in recent years,China's employee stock ownership plans has gradually become standardized.It has gained rapid development.But due to the weak foundation,in the process of rapid development there have been many problems that waiting to be solved.Due to the lack of practical experiences,many listed companies was forced to suspend the implementation of the employee stock ownership plan.What's more,there are some listed companies,although the implementation of the ESOPs has completed,but the incentive effect is not significant enough and even bring damage the value of the company.So it is necessary to study the employee stock ownership plan of listed companies in China.This paper analyzes the implementation process of the employee holding plan in Boya bio-pharmaceutical through the form of case analysis.In the case introduction section,the author introduces the stock source,the source of funds,the staff of participation,the management mode and the progress of the implementation of the employee stock ownership plan in the process of implementation of the liberal arts employee holding plan.Through a detailed description of the case so that the following part of the case analysis could lay a solid foundation.In the case analysis section,firstly,the author analyzes the model design of the employee stock ownership plan and finds out that the model draws on the experience of the mature capital market.Then the paper analysed the cost they paid,the exsiting risks and benefits they may get from the perspective of the different participant and find out that the model design of the employee shareholding plans is very important throughout the process.Then,by analyzsing the company's operating performance and the company's stock market reaction to see the temporary results of the implementation of the employee stock ownership plan.And found that only according the above indicators is difficult to see whether the employee stock ownership plan bring some substantial changes to the company in short term.On the other hand we can not deny the implementation of the employee stock ownership plan,because the company's value is not only reflected in the performance of the company's oprating performance and the effectiveness of the employee's shareholding plan will gradually appear in the future.Finally,the paper point out some weakness and problems that the Boya bio-pharmaceutical's ESOPs have in the present and the paper try to find out the reasons and gives some solution to the these problems.In the last part of the paper,it gives some policy recommendations and future prospects for the development of ESOPs in China.