Research On The Influence Of Dahua's Employee Stock Ownership Plan On Enterprise Innovation And Performance

The Employee Stock Ownership Program originated in the United States in the 1950 s and was proposed by the economist Luis Kelso and has been fully developed in Western countries.In the 1980 s,China put forward the idea of employee stock ownership.In the following long period of time,due to the imperfection of laws and regulations and the backwardness of concept,the development of employee stock ownership plan in China was slow.However,with the reform of the shareholding structure of state-owned enterprises in China,The use of employee stock ownership plans in listed companies is also increasing.By the end of 2018,693 A-share listed companies have implemented employee stock ownership plans,which indicates that employees hold shares.The application and development of the plan in Chinese enterprises has gradually matured.This paper takes Dahua shares,one of the leading companies in the security industry,as the main research object.Firstly,it introduces the characteristics of the three-phase employee stock ownership plan implemented by the company and analyzes the motivation of the enterprise to implement the incentive plan.Dahua shares is a private high-tech enterprise.The survival of the company is due to the innovation of technology and products.Dahua shares gives the core technician part of the rights part of the rights through the employee stock ownership plan to build and improve the community of interests between shareholders and employees.Based on the corporate characteristics of Dahua Co.,Ltd.and the implementation background of employee stock ownership plan,based on the theory of relevant incentive mechanism,the paper analyzes the enterprise innovation and enterprise performance data of Dahua Co.,Ltd.during 2011-2017,and discuss Dahua shares through comparative analysis.Implement changes in indicators of corporate innovation and corporate performance before and after the employee stock ownership plan,and explore the impact of this incentive policy for the employee level on business innovation and performance.In addition,this paper also collects the data of listed companies that implement the senior management equity incentive plan and the implementation of any incentive mechanism in the same industry,and compares with the relevant indicators after the implementation of the employee stock ownership plan by Dahua.It further highlights the relevant effects of high-tech enterprise employee stock ownership plans on corporate innovation and corporate performance.It also reflects the advantages of the employee stock ownership plan in the business process.Through a series of analysis of the case,the following inspirations were obtained:(1)As a high-tech enterprise,Dahua Co.,Ltd.'s three-phase employee stock ownership plan has had a positive impact on corporate R&D investment,R&D output and R&D results.(2)The employee stock ownership plan of Dahua shares can indirectly improve some of the company's performance indicators.In addition,when formulating relevant incentive programs,based on the different characteristics of different enterprises,the more targeted the employees in different positions,the wider the coverage and the bigger positive effect on the enterprise performance indicators.(3)Compared with the executive incentives,the employee shareholding plan has a more positive impact on promoting enterprise innovation and improving the performance level of enterprises.Such a distinctive incentive mechanism,if properly applied to corporate management,will have a profound and positive impact on the long-term sustainable development of the enterprise.