The Study On The Influence Of LeTV ESOP On Corporate Governance And Performance

Joint-stock companies are a kind of organization form based on the separation between ownership and managerial authority,with accompanying agents and shares,as well as corporate governance issues.For example,low-level corporate governance results in inefficient internal supervision,more prominent inside control,and overwhelmingly big shareholder problems.All of these problems have been the concerns among academic and theoretical circles to find ways to solve agency conflicts and improve corporate governance.Good corporate governance can not only make a company survive the increasingly complex competition environment,but also benefit its long-term development.Based on agency theory and the theory of corporate governance,this paper focuses on the ownership structure to study corporate governance and its performance with the LeTV as the object from the perspective of employee shareholding.This paper is divided into five chapters.The first chapter is the introduction,which mainly expounds the research background,research significance,research perspectives,research methods,literature review,research frame and innovation points;The second chapter mainly elaborates the theoretical basis;The third chapter focuses on the company profile,its industry background and its present situation;The fourth chapter is the brief description of the LeTV employee stock ownership status;the impact of corporate governance from the influence on the choice of incentive scheme and the principal-agent problem and the ownership concentration;and the analysis of the influence of LeTV employee stock ownership on corporate performance considering the four financial indicators of profitability,operation ability,of solvency and development ability;the empirical analysis of the short-term market reaction of LeTV employee shareholding;The fifth chapter,the writer summarizes and evaluates the strengths and weaknesses of the model after the analysis of LeTV first phase of ESOP,and puts forward some suggestions and proposals for the company,with the illustration of main contributions and shortcomings of this paper in the end.It is found that the implementation of LeTV employee stock ownership plan owes to its poor financial situation.The writer uses the event analysis method to analyze the market reaction of the first-phase employee stock ownership plan.It is shown that the announcement of LeTV plan and its official listing notice have positive effects.From the point of significance test,the whole process is influenced by employee stock ownership plan.Employee stock ownership plan,compared with traditional equity incentive,is simpler to operate because of its no inspection conditions.What’s more,it can also improve the financial situations of enterprises.However,this model also has some shortcomings,such as policy limits,too few incentive objects,capital contribution from their own and higher exercise price.As for the case analysis,this paper puts forward the following suggestions: regulating the related employee shareholding laws,referring to the mature market experience,improving the mechanism of employee shareholding incentives and constraints,having more ESOP incentives,increasing and the proportion of employee shareholding,strengthening the internal management,etc.