A Study On The Incentive Effect Of The ESOP Of Shanggang Group

Since the 18th CPC National Congress,under the background of vigorously promoting the reform of mixed ownership of state-owned enterprises,the pilot scope of the new round of ESOP has gradually expanded.There are some characteristics of state-owned enterprises,such as the lack of supervision caused by the "absence of owners",the agency cost caused by the inconsistency between the management and the owners' goals,and the low efficiency of enterprises with insufficient incentives.The purpose of the reform is to establish a long-term incentive and supervision mechanism to improve the efficiency and vitality of enterprises.At present,employee stock ownership plan has become a common way of employee incentive in A-share listed companies.In 2014,after the guidance on the pilot implementation of ESOP by listed companies issued by the CSRC came out,many state-owned enterprises have joined the pilot team,but there are many problems in the implementation.Some enterprises fail to implement ESOP,and some even infringe the interests of employees and small and mediumsized shareholders of enterprises.The development of ESOP in China is not mature yet.Therefore,it is of great research value to explore ESOP under the background of mixed ownership reform in state-owned enterprises based on the needs of reform and development of mixed ownership and the current situation of implementation of ESOP.Since its listing in 2006,the market performance of Shanggang group has steadily increased and the company's performance has grown well.However,in 2013,the competitiveness of the port industry increased and the business of the enterprise itself was single,which led to the decline of its performance growth.After the implementation of ESOP,the enterprise performance has been improved significantly.Shanggang group's ESOP is typical for its wide coverage,large amount and early implementation.In this paper,the case study method is used,and the above Hong Kong Group is the research object.Firstly,the background,company profile,scheme content and implementation process of Shanghai Hong Kong Group's implementation of ESOP are introduced.Then,from the perspective of human capital,equity structure,capital structure and market signal,the paper analyzes the governance effect,market effect and financial effect of the implementation of ESOP.Finally,based on the above analysis,the research conclusions and suggestions are drawn.The conclusions of this paper are as follows:(1)ESOP has an incentive effect on enterprise performance,which can improve the corporate governance effect,market effect and financial effect.(2)ESOP is an effective way for state-owned enterprises to carry out mixed reform.It can not only encourage employees to improve operating efficiency,but also improve the governance structure to promote employees to participate in corporate governance and improve the governance level.This paper also puts forward some suggestions from the perspective of company and policy,aiming to provide some reference for the implementation of ESOP in stateowned enterprises.