Research On The Incentive Effect Of Employee Stock Ownership Plan Under The Mixed Ownership Reform

Mixed ownership is an important form of the basic economic system after China's reform and opening up.The decision of the CPC central committee on some major issues concerning comprehensively deepening reform(2013)pointed out that mixed ownership economy is allowed to implement employee stock ownership,so as to form a community of interests of capital owners and workers.Shanghai,as the first province to undergo a new round of state-owned enterprises reform,has fired the first shot.SAIC Motor is the first to eat crab.Employee stock ownership plan(ESOP)is a kind of incentive system arrangement for internal employees of an enterprise.Its implementation purpose is to make internal employees work hard,share risks with the company,and reduce employees' "lazy" behavior.On October 8,2015,Shanghai automotive industry corporation(SAIC)issued a notice to suspend the trading due to the company is planning to issue shares for non-public use.In accordance with the relevant provisions,the company's shares opened on November 6,2015 to resume trading.On November 5,SAIC for A meeting of the board,through the non-public stock related bills,including the legislation about the company's non-public a-share stock plan "and" Shanghai automotive group co.,LTD.,the core employee stock ownership plan(draft)(subscribe non-public stock way),etc.In addition,the mixed ownership reform of SAIC has its own unique features.It only runs the employee stock ownership plan to achieve the purpose,and has not introduced other private capital,which avoids other interference factors of this case study to a certain extent.In the context of China's unique mixed ownership,why implement employee ownership? Does SAIC's employee stock ownership plan have incentive effect? What effect did the employee stock ownership plan of SAIC achieve? How to further optimize the incentive effect? These are the important problems in this paper.Based on the relevant theories of employee stock ownership,this paper adopts the research method of case analysis to analyze the motivation,content and implementation effect of the employee stock ownership plan implemented by SAIC.First,combed the domestic and foreign scholars about the employee shareholding incentive effects on financial performance,corporate governance and incentive effects influence factors in the research,in order to clarify the study of existing literature context,analysis of the shortcomings of existing studies,and on this basis,determine the research direction of this article,combing the concepts of mixed ownership and corporate governance,the principal-agent theory,agency cost theory,stakeholder theory and other basic theory.Secondly,SAIC's response to the reform of mixed ownership under the employee stock ownership plan as a case study.By analyzing the promotion process of mixed ownership reform and employee stock ownership plan in China,the mutual influence and effect between them are further studied.This paper mainly expounds the case background,implementation content and implementation motivation of SAIC's employee shareholding.Based on the performance of SAIC after the implementation of the employee stock ownership plan,this paper analyzes the incentive effect in combination with the aforementioned motivations and paths.Among them,through the share price,the market performance and so on the market reflection effect is analyzed;combined with the comparison of the current situation of the industry,the financial performance is analyzed by four categories of financial indicators.This paper analyzes the effect of corporate governance through the factors of corporate governance.Finally,this paper summarizes the multi-directional incentive effect brought to the enterprise by the implementation of the employee stock ownership plan under the background of the mixed ownership reform of SAIC.Through the analysis of the sales performance,it is concluded that SAIC has been growing relative to the overall environment under the circumstance of the depressed industrial environment.Through the analysis of the talent structure,it is concluded that the talent level of SAIC is improving,etc.,which proves that the employee stock ownership plan has brought a certain degree of positive effect to SAIC.According to the research process and results,taking into account the current economic conditions,this paper makes an in-depth study on how the employee stock ownership plan can effectively improve the incentive output and exert positive influence to achieve better incentive effect.This paper is helpful for enterprises to take their own situation into consideration,provide reference directions for state-owned enterprises to respond to the call of mixed ownership reform to implement the employee shareholding plan in the future,retain core talents,improve the competitive advantage of enterprises,and give full play to the incentive effect of employee shareholding.For the regulatory authorities,this study can be used as a reference to help them further dig into the hidden problems in the implementation of the esop,and adjust the contents of relevant policy documents,laws and regulations in real time according to the actual situation,so as to gradually improve the construction of the system.