The Case Analysis Of Employee Stock Ownership Plan Of China Ping An

Employee stock ownership plan from the United States,developed in the United States,perfect in the United States.As early as the fifties of last century,the United States has proposed employee stock ownership plan,and the company has begun to implement.To the end of the last century,there are tens of thousands of Companies in the United States,tens of millions of employees to participate in the shareholding.Successful experience of Employee holdings in the United States of,making countries around the world racing to learn and imitate.China's employee stock ownership plan was adopted in the eighties of last century.But its development in China is not as smooth as in the United States,there are some problems,such as management mechanisms,legal environment,etc.are not mature enough.Compared to the United States,the study and research in our country are not enough,and current studies are mainly about legal issues of Employee stock ownership,shareholding system,development of trust,but the research on the actual effect is relatively few.Especially for the analysis of a specific case more less.A few studies on the effect are basically empirical studies.In the current situation ESOP are increasingly favored by listed companies,whether the implementation of ESOP has a positive impact on the value of the company,how much of its impact,and how to affect the value of the company,These questions are important when the company makes a decision on whether to choose an employee stock ownership plan.Because of that,this paper is based on practical cases,Comparing China Ping An competitiveness,operational capacity and shareholder wealth with it before implementation plan,and compared with the same industry,China Life Insurance,which not implement the plan.Then provide reference for the decision-making of employee stock ownership plan in our country,and play a positive role in promoting ESOP use and popularization in China.This paper is divided into two parts to study the implementation of ESOP.In the previous part,the normative research,first,study of its background and significance,second review the relevant literature combined with domestic and foreign scholars,finally delimit and describe the relevant concepts of ESOP,and Introduce the basic theory,such as commissioned Agent theory,heart contract theory,two-factor theory,labor rights,incentive theory.In the latter part and the case study,briefly introduces the company and analyzes the basic situation of its ESOP,then analyzes the specific program characteristics of the employee stock ownership plan and the motivations of the employee stock ownership plan,And then use the financial statements of the data,Comparing China Ping An competitiveness,operational capacity and shareholder wealth with it before implementation plan and compared with the same industry,China Life Insurance,which not implement the plan in the analysis of its impact on the value of the company and the reasons for the successful implementation.Finally,the first two parts of the study concluded.Through the study of this paper found the following conclusions.First,implement employee stock ownership plan will have a positive effect on Company value of China Ping An,Whether in short-term efficiency or long-term development.Second,implement employee stock ownership plan can help to solve the problem of governance structure in China Ping An,such as agency issues.Third,implement employee stock ownership plan make China Ping An more attractive in terms of human resources,effectively alleviate the current prevalence problem of talent shortage.The conclusions of this paper provide some basis in theory for China's listed companies to make decision whether to implement the employee stock ownership plan.Through revealing the cause of that ESOP can produce the desired effect,provide suggestions to improvement the plan for those companies who had been implemented but have not achieved the desired effect.And provide some experience for those companies who intend to announce the implementation of ESOP.Finally it can helps those investor who intends to invest in the company which implemented the plan to make decisions more objectively.