Research On The Effect Of Employee Stock Ownership Plan In Private Listed Company

The employee stock ownership plan(ESOP)started in the United States in the 1950 s.Since the introduction of the reform and opening up,China has experienced the process of trial,stop,trial,and standardization.Until recently,the state has issued a series of policy documents to regulate employees.The shareholding behavior also promoted the development of the employee stock ownership system in China.On June 20,2014,the “Guiding Opinions on the Pilot Implementation of the Employee Stock Ownership Plan for Listed Companies” issued by the China Securities Regulatory Commission opened the prelude to the enthusiasm of the employee stock ownership plan in China’s capital market,and the listed companies that promoted the system began to bloom everywhere.According to the sampling statistics,the proportion of private enterprises in the listed companies that hold employee stocks is as high as 83%.It can be seen that the privately-held listed companies have become the absolute main force of the employee stock ownership plan.So what is the impact of employee stock ownership plans on private companies? Does the employee stock ownership program play a role in attracting,retaining and motivating company employees? Is it conducive to the long-term development of the company? This is the issue that this paper will focus on.This paper mainly uses literature comprehensive analysis,case analysis,index analysis,comparative analysis and other methods to study the effect of employee stock ownership plan of private listed companies.Firstly,the background and research significance of this paper are introduced.The research literatures related to the employee shareholding plan at home and abroad are classified and summarized.The research contents and research methods of this paper are also briefly introduced.Secondly,it summarizes the types and elements of the employee stock ownership plan and the development process of the employee stock ownership plan in China.It focuses on the theoretical basis of human capital theory,principal-agent theory,incentive theory and confidence theory.On the basis of the above theory,this paper takes the private enterprise O-film Technology as an example to introduce the employee stock ownership plan,briefly introduces the company profile and governance structure of O-film Tech,and focuses on the implementation plan of its employee stock ownership plan,such as: shareholding The scope of employees,the number of shares held,the management model,the sale of stocks,etc.are introduced in detail,and the performance of the market performance,non-financial performance,financial performance and other performance indicators are analyzed and evaluated.This paper finds that the employee stock ownership plan of O-film Tech and its shareholders’ wealth has no significant correlation.It reduced agency costs,improved the company’s ability to innovate but did not improve the company’s performance.Therefore,this paper recommend that private enterprises should pay attention to the long-term development of the company when implementing employee stock ownership,and expand the scope of the employee stock ownership plan.We will increase the number of shares held by employees,control the frequency of implementation of employee stock ownership plans,and establish a sound performance appraisal system for employee stock ownership plans,so as to develop a more complete and motivating employee stock ownership plan.