Research On The Influence Of Employee Stock Ownership Plan On Company Value

As a special form of ownership distribution,employee stock ownership plan(ESOP)is widely held by employees.Compared with management stock ownership,ESOP can often further enhancement of employees' sense of belonging and work enthusiasm.Therefore,it has become a common equity incentive method adopted by companies in western countries.Case studies can provide a systematic perspective and build a deeper and more comprehensive understanding by examining and thinking about the object of study as directly as possible.Therefore,based on the current situation of employee stock ownership in Huawei,this paper makes a systematic and comprehensive analysis of Huawei by case analysis,hoping to have a deeper understanding of the case.By comparing its case with Zhong Xing Telecommunication Equipment Corporation,a central enterprise in the same industry,we can find similarities and differences.Through the detailed investigation of this article,it is found that :(1)Huawei employee stock ownership plan has a positive impact on the value of the company.(2)Huawei's employee stock ownership plan has significantly improved corporate governance and reduced agency costs.(3)Huawei employee stock ownership plan helps the company to control operating costs and improve its gross profit rate.(4)Huawei employee stock ownership Plan promotes the company to adopt sound financial and business strategies and reduces the company's risks.Combining with China's institutional environment and the hot of huawei enterprise in recent years,through case analysis and other methods in the same company on contrast for non-listed companies as well as private technology enterprises implement employee stock ownership plan provides some empirical evidence to support,at the same time,through the case put forward employee-owned,aimed at the transmission mechanism and function mechanism of the value of the company.This can help companies that have implemented the ESOP to find their focal points,providing investment references for stakeholders of listed companies and providing reference and theoretical basis for Chinese private enterprises to conduct ESOP.