Case Analysis Of Conch Group’s Implementation Of Employee Stockownership Plan Under The Background Of Mixed Reform

Eight years ago,the Third Plenary Session of the Eighteenth Central Committee was held and the meeting issued a major document on comprehensively deepening reforms,which undoubtedly set off a wave of reforms in my country’s capital market.The central idea of the document is to promote the sound development of state-owned enterprises and protect the property safety of state-owned capital by adjusting and optimizing the equity structure and governance structure of existing state-owned enterprises.So what specific methods are used to achieve the above goals? At this time,an equity incentive plan called an employee stock ownership plan entered the public’s field of vision.The employee stock ownership plan is like signing an intangible contract between the employee and the company,linking the benefits of the employee with the company through the profit link,so as to achieve the purpose of motivating employees.However,this method is still relatively rare,and it lacks effective practical experience and excellent case companies.In order to obtain the desired effect,it is necessary to conduct vigorous research and exploration by relevant personnel.At the moment,we urgently need to determine whether this innovative measure of employee stock ownership will affect the company’s value,interests,and development.For this reason,based on a thorough study and understanding of the relationship between the mixed ownership reform and the employee stock ownership plan,the author selected the very representative Anhui Conch Cement as a case company for a complete analysis.This article is mainly for the purpose of research.Why can the Conch Group be able to reap the results on the road of employee stock ownership plan.First of all,the author elaborated on the significance of the topic and the relevant research background of the mixed reform,and clarified the necessity of research.At the same time,the author also reviewed the literature on the mixed reform and employee stock ownership plan by various scholars at home and abroad in recent years.The research carried out a detailed reading,summarized a research direction and specific research plan of this article,and established the general context and structure of this article.In the theoretical part,it briefly expounds the meaning and motivation of the mixed reform,and deeply analyzes the relationship between the mixed reform of state-owned enterprises and employee stock ownership based on the theory of property rights,incentive theory,and human capital theory.Then,through the event research method and the financial indicator research method to analyze the changes after the implementation of the employee stock ownership plan by Conch Group,the author found that after the implementation of the employee stock ownership plan,the equity structure and governance structure of Conch Cement have been improved to a certain extent.,An effective equity incentive system has been established within the enterprise,and considerable progress has been made in operating performance.In the analysis of the business performance of the company,the traditional financial indicator analysis method is used to thoroughly analyze the specific changes in the operating performance of the case company after the implementation of employee stock ownership from four dimensions,and through path analysis,the author has found The secret of the company’s success in the mixed reform: The trade union and natural persons’ shareholding broke the dominance of state-owned capital.The participation of employees in the company’s decision-making has created checks and balances on the power of the company’s top executives,and the unlocking conditions and transfer rules of the shares are constrained.The employee’s stock ownership intentions and behaviors and the creation of the employee stock ownership platform have played a multi-dimensional role.Finally,this article summarizes the case of Anhui Conch Group implementing an employee stock ownership plan under the background of mixed reform.According to the research case’s own situation,comprehensively consider the case conclusions and Chinese state-owned enterprises,analyze the reasons for the success of Conch Group’s mixed reform,and draw the conclusions of this article.At the same time,it gives several suggestions for further improving the employee shareholding mechanism: Equity target differentiation and dynamic evaluation mechanism,raise funds through multiple channels to promote the effect of equity incentives,set up a special institution to manage employee shareholding,the state will give more tax and credit preferential policies,and the regulatory authorities will strengthen the guidance and guidance of state-owned capital.Supervision.In summary,the successful experience of Conch Group’s mixed reform can undoubtedly be used for reference by other large and medium-sized enterprises in our country,especially providing a typical reference sample of mixed reform for my country’s state-owned enterprises.