An Empirical Study On The Effect Of ESOP On The Stock Price Of Listed Companies

This paper examines the overall impact of ESOPs on the stock price of listed companies,sampled by 2014 and 2015 from Shanghai and Shenzhen listed companies.The study found that the implementation of employee stock ownership plan can significantly improve the stock price of listed companies.In order to further study how the implementation of ESOP affects the stock price of listed companies,this paper chooses 385 listed companies implemented ESOP from June 2014 to December 2015 as a sample,to study the influence of ESOP on the company's stock price under different implementation conditions and ways.The study found that the use of non-public private placement to obtain the stock required by the staff holdings,more conducive to the rise in the stock price of listed companies;state-owned holding companies to implement ESOP is not as effective as private enterprises was;large companies that implement employee holdings are less effective than smaller companies;source of funding for ESOP has no obvious influence on the stock price.The specific contents of the study are divided into three parts.Firstly,the literature research at home and abroad is sorted out,explored the important theoretical basis deeply,found out the theoretical basis of the impact for ESOP on stock price,put forward the hypothesis on this basis.Specific assumptions have the overall impact of ESOP on the stock price of listed companies,as well as the specific impact in different implementation conditions and methods on the stock price.Implementation conditions include high-tech enterprises,state-owned holdings and enterprise scale,and implementation ways include stock sources,funds sources and management shareholding ratio;secondly,sampled 2545 listed companies in Shanghai and Shenzhen in 2014 and 2015,empirical studied the overall impact of ESOP on stock price of listed companies;in order to further study how the implementation of ESOP affects the stock price of listed companies,chooses 385 listed companies in Shanghai and Shenzhen implemented ESOP from June 2014 to December 2015 as a sample,to empirical study the influence of ESOP on the company's stock price under different implementation conditions and ways.Finally,on the basis of empirical research,the conclusions and suggestions of this paper are drawn.In this paper,the combination of normative research and empirical research methods were used,theoretical analysis using normative research methods,testing hypothesis which using empirical research methods.It uses event-driven research methods to verified the specific impact for ESOP to stock price.The main contribution of this paper is to systematically sorted out the relevant information of ESOP for listed companies since June 2014,with the latest sample data to verify the impact of ESOP on the stock price of listed companies,and enrich the theory of literature of ESOP,to provide the basic information for the follow-up study.The deficiency of this paper is that the research period is short,and the long-term effect of employee stock ownership plan on stock price is difficult to verify,the validity of the research conclusion in this paper also needs time to test.