Study On The Implementation Effect Of Employee Stock Ownership Plan Under The Mixed-Ownership Reform Of State-Owned Enterprises

Since the 19 th National Congress,the reform of state-owned mixed ownership has opened a new prelude.As an important part of the reform of state-owned enterprises,ESOP plays an important role in the common development and integration of different ownership economies.Since the China Securities Regulatory Commission issued the guidance on the implementation of the ESOP for listed companies in 2014,more and more companies have started to try the ESOP.However,the implementation effect of ESOP was unsatisfactory.Many companies have not only failed to achieve the expected results after carrying out the ESOP,but also have reduced the business performance.Especially under the background of mixed ownership reform,it is of great significance to study the implementation effect of the ESOP.Taking SAIC as the research object,this paper studies ESOP under the background of mixed-ownership reform.Firstly,this paper summarizes the relevant theories and literatures of ESOP,which lays a theoretical foundation of the evaluation of the ESOP implementation effect.Secondly,this paper introduces the implementation background,development process and operation characteristics of SAIC’s ESOP.Furthermore,this paper adopts the comparative analysis method to analyze the implementation effect of the ESOP from three aspects: market performance,mixed reform effect and incentive effect.Finally,this paper makes an overall evaluation on the design of SAIC’s ESOP and provides reference for other enterprises that plan to implement ESOP.In view of the operational characteristics of the ESOP,the paper summarizes the following six characteristics:(1)The scope of the granted employee reflects fairness and universality.(2)Long duration.(3)The source and direction of funds are clear.(4)The intensity of mixed ownership reform is weak.(5)The subscription ratio and shareholding limit of different employees are not clear.(6)Incomplete information disclosure.For the implementation effect of SAIC’s ESOP,this paper draws some conclusions:(1)From the perspective of market effect,the market’s response to the ESOP in the short term is positive.(2)From the perspective of mixed reform effects,although ESOP optimizes the company’s ownership structure,reduces agency costs,and realizes the preservation and appreciation of state-owned assets,these effects are not significant due to the weak degree of mixed reform.(3)From the perspective of incentive effect,ESOP plays a promoting role in retaining key talents and attracting outstanding talents;it improves the research intensity and make breakthroughs in new energy technology innovation;it increases the market share of new energy vehicles and stabilizes the market share of the whole vehicle;it strengthens cost control and raises gross profit margin,but due to the weak degree of mixed reform,the effect on profitability improvement is not obvious.This article provides relevant practical basis and opinions for listed companies that have implemented or intend to implement ESOP,including:(1)Increasing the number of ESOP grantees.(2)The source of funds for ESOP should be diversified.(3)To avoid averaging the proportion of ESOP,the proportion should be differentiated.(4)The disclosure of ESOP should be open and transparent.The analysis of SAIC’s ESOP can provide some reference for the mixed ownership reform of stated-owned enterprises and accumulate experience in how to design the ESOP.