The Research On Market Response To The Employee Stock Ownership Plan Policy Of The Main Board Listed Companies

On June 20,2014,the State Council’s Securities Regulatory Commission issued the“Guiding Opinions on the Pilot Program for the Implementation of Employee Stock Ownership Plan of Listed Companies”(hereinafter referred to as the “Guiding Opinions”).Subsequently,many listed companies issued employee stock plan preplan announcements.The employee stock ownership plan system has ushered in a great development since then.Employees,as insiders of the company,understand the company’s business activities.Compared with outside investors,employees have a huge information advantage.Their shareholding behaviors will become an important market signal and affect the company’s stock price.Therefore,The market response of the employee stock ownership plan policy was studied.The article selects the sample of main board listed companies that announced the employee stock ownership plan since the issuance of the Guidance Opinions on June 20,2014 to December31,2017 and conducts a study on the market response to the employee stock ownership plan.First,use the event research method to calculate the average excess return rate and the average cumulative excess return rate of main board listed company’s declaration of employee stock ownership plan,and conduct statistical analysis on it.Second,establish a regression model of cumulative excess returns and influencing factors and conduct empirical research.The empirical results of the event research method of this article show that the listed companies in the main board market in China that issue a notice of employee stock ownership plan will produce a significant positive market reaction,and investors generally believe that this is a good news released by a listed company that issues employee stock ownership plans.The empirical results of further regression analysis indicate that in the implementation of the Employee Stock Ownership Plan on the Main Board listed companies,the greater the proportion of employee holdings and the proportion of management ’ s holdings,the better the market response.And the positive reaction of investors to management’s shareholdings is more positive than that of ordinary employees.When the employee stock ownership plan is arranged in the form of non-public issuance of stocks and self-financing,it has a better publicity effect.