A Study On The Implementation Of Defined Benefit Plan And Company Performance In China

As a universal phenomenon in developed countries has appeared,the ageing population is also gradually become a reality in our country,and aging degree will continue to deepen in the future.In order to ease the aging problem in China,the new employee compensation standard has been issued in January 2014,which put forward the concept of welfare after departure and regulations of defined benefit plan.It is of great significance to the convergence of international accounting standards and the improvement of Chinese social security system.The existing literature of defined benefit plan has been relatively comprehensive and mature.However,due to the late promotion of defined benefit plan in China,the system is not perfect,and the cognition of enterprises on defined benefit plan is not comprehensive enough.Therefore,most of the researches in China are still in the initial stage.By summarizing the previous research results,it is found that the accounting standards for enterprises in China only have simple provisions,but do not specify specific problems and requirements;Moreover,the research in China is still limited to the interpretation of accounting and other theoretical policies,and lacks the research on the actual operation of benefit plans in specific cases.The existing literatures in China pay too much attention to the implementation status of the plan and lack of research on the effect of the implementation of the defined benefit plan on company performance.Therefore,this paper combines theoretical research with case study to jointly study the relationship between the implementation of defined benefit plan and corporate performance.After explaining the definition of the concept of after-service benefits,defined benefit plan and defined contribution plan,and introducing the measurement index of corporate performance used in this paper,the relevant theories of defined benefit plan and corporate performance are summarized to establish the theoretical basis of this paper and improve the theoretical analysis of this paper.In order to reflect the impact of the implementation of setting benefit plan on corporate performance in practice more completely,this paper starts from the analysis of the overall implementation situation in China,and then focuses on the implementation effect of the case company.Firstly,this paper analyzes the overall status of the implementation of the defined benefit plan in China,including the accounting and information disclosure of the defined benefit plan,and explores the impact of the defined benefit plan on corporate performance in China from the perspectives of financial burden and incentive effect,and then theoretically analyzes the transmission path of the defined benefit plan on corporate performance.Then it further analyzes the impact of the implementation of setting benefit plan on the company's performance from four aspects,including the company's market value,profitability,cash flow stability and actuarial hypothesis,according to the background of setting benefit plan,the company's operating status and the staff structure.Through the analysis on the practical level,we found that there are some limitations in the process of setting defined benefit plan,such as limited details,scope of implementation guidelines,unclear actuarial assumptions and imperfect disclosure content and platform.It also puts forward some suggestions for improving the relevant standards for the promotion of the defined benefit plan in China,expanding the scope of the implementation plan staff,the information disclosure platform of the defined benefit plan in China and the professional level of accounting actuaries.Finally,it puts forward a prospect for the future development of the defined benefit plan in China.Contrast through research,the author thinks that setting benefit plan is the inevitable choice of China's enterprises to safeguard employees hoping that through this article research,to enrich and develop the theoretical practice cognition to set benefit plans,popularization and innovation set benefit plan of the research achievements of theory combining practice and expect to solve our country set benefit plan system design at the root of the problem but set the benefit plan of our country's existing public information is less,the lack of experience,for academic research difficulty also bigger,so there are still some not mature in the study of this article's point of views.However,with the gradual prevalence of defined benefit plans in China,the national employee compensation standards are gradually standardized,and the capital market is gradually improved,it is believed that defined benefit plans will become more mature and information disclosure will be more comprehensive.