ESOP In SOEs:the Logic,the Path And The Economic Outcome

State owned enterprises occupy a leading position in China's market economy.According to statistics,the total assets of state-owned enterprises amounted to 119 trillion and 500 billion yuan at the end of 2015.Thus,if China's economy needs to maintain steady growth,it is necessary to stimulate the vitality of state-owned enterprises through some kind of reform.Employee stock ownership is an important way of reform.Part of the listed state-owned enterprises,using as the yardstick the guidance the Commission issued in 2014 on the implementation of employee stock ownership plan pilot listed companies,are doing the employee stock ownership attempt.As of March 30,2017,70 state-owned listed companies have issued the employee stock ownership plan(Draft).The number of state-owned listed companies accounted for only 10% of the number of total listed companies which have carried out the plan.From the number to the process,state-owned companies are far behind private enterprises.Although the Commission,the SASAC and other official guidance documents issued,the lack of top-level design related to the implementation of ESOP has made ESOP become difficult.This situation allows the use of state-owned listed companies to participate in the successful implementation of ESOP experience has become very practically significant.The SIPG is the first state-owned listed company that successfully implemented the ESOP.Both the SIPG carried out broad-based ESOP and its implementation process,have high research value and significance.This paper uses the single case study method described by Yin.I use the SIPG employee stock ownership as a case,based on the analysis of Sino-US ESOP differences and focuses on the analysis of the port group on the implementation of the whole process of the employee stock ownership plan.I use other auxiliary cases for comparative analysis.On the basis of the three parts of the behavior logic,the implementation path and the economic consequences,this paper makes a detailed analysis of the employee stock ownership of the port group.Based on the study,we find that the behavior of employee stock ownership is appropriate,the choice of the path is right.The employee stock ownership plan is introduced,which leads to a positive market reaction and improves the performance of the company.The study shows that,for the sake of capital and politics,the implementation of ESOP is an appropriate measure.Although employees can not immediately be involved in the decision-making process of the company,the SIPG employee stock ownership enhance the competitiveness of the company,retaining the talent of the enterprise.On the basis of this study,this paper puts forward a theoretical framework for the analysis of state-owned enterprises to implement ESOP.