Research On Employee Stock Ownership Plan Of JinLong Machinery&Electrinics Co.,Ltd.

With the development of the economy,the continuous innovation of industrial technology,the changing environment of enterprises,the increasing demand for human capital stability of listed companies,and the downturn of China's stock market at the same time,the China Securities Regulatory Commission has reopened.Employee Stock Ownership Plans(ESOP)of listed companies in China.The definition of the employee stock ownership plan over time now refers to the system in which the listed company obtains the company's stock and holds it for a long time according to the employee's wishes,and the shareholding interest is allocated to the employee according to the agreement.In June 2014,the China Securities Regulatory Commission issued the “Guiding Opinions on the Pilot Implementation of the Employee Stock Ownership Plan for Listed Companies.” By the end of 2018,more than 700 listed companies had implemented employee stock ownership plans.Among these enterprises,some have achieved their original goals through shareholding plans,and some have not achieved the effect of incentives,but have suffered losses due to improper operation.This paper is divided into four parts.Firstly,it expounds the background and significance of the topic,the research methods and contents of the thesis.From the theoretical point of view,it describes the theory developed by the employee stock ownership plan involved in this paper.These theoretical foundations are also the research of this paper.Basics and tools.Secondly,listed companies need to go through many steps to implement the employee stock ownership plan,including the design of the employee stock ownership plan,the timing of implementing the employee stock ownership plan,the determination of the employees participating in the shareholding plan,and the determination of the source of the stock and the source of funds.At the same time,although the employee stock ownership plan is good,the results often fail to meet people's expectations,even far below the original target value.Third,listed companies will encounter some difficulties in implementing the employee stock ownership plan.We will start to analyze some of these issues.The implementation of the employee stock ownership plan will encounter the problem of hot and cold,that is,the enthusiasm of employees to participate in the shareholding plan is insufficient,and the implementation of the company's employee stock ownership plan is blocked.The company failed to grasp the company's overall business strategy,and the implementation of the business strategy will lead to the failure of the employee stock ownership plan.When designing an employee stock ownership plan,many design factors are also the reasons that affect the implementation of the employee stock ownership plan.There are also imperfections in the policies related to the employee stock ownership plan,which will also result in a discount on the effectiveness of the implementation of the employee stock ownership plan.On this basis,this paper has carried out countermeasures and policy recommendations for the problems encountered by listed companies in implementing the employee stock ownership plan.I hope that the employee stock ownership plan of listed companies in China can better serve the listed companies in China.