Effects And Reasons Analysis Of Haier Zhijia Employee Stock Ownership Plan

As one of the important incentive methods to promote the development of Chinese enterprises,it has been five years since the employee stock ownership plan was restarted in 2014,but the phenomenon of "more losses and less profits" and obvious polarization have appeared in the market.Some scholars have shown that the setting of individual elements in the shareholding plan will lead to differences in the implementation effect of the shareholding plan,but there is a lack of relevant literature for in-depth research in this area.Therefore,from the perspective of scheme design,analyzing the reasons for the good and bad implementation of the employee stock ownership plan and putting forward relevant suggestions will help promote the employee stock ownership plan in our country to better exert its stimulating role,and promote the improvement of corporate performance and achieve strategic goals,which is a topic worth studying.Based on this,this article takes Haier Zhijia as the research object,and by answering two questions,it proposes suggestions to improve the implementation effect of employee stock ownership plan from the perspective of scheme design.The two questions are:(1)what is the implementation effect of Haier Zhijia’s implementation of employee stock ownership plan?(2)From the perspective of scheme design,what are the reasons(or advantages)of Haier Zhijia’s fourth phase plan can play an active role in various aspects?Specifically,this article first summarizes the relevant aspects of analyzing the implementation effects of employee stock ownership plans and the reasons for the different effects from the existing literature research and theory;then,based on the employee stock ownership plans introduced in China from June 2014 to June 2019,the basic situation of employee shareholding plans in the market is classified and statistically provided,and market evidence is provided for comparing the differences in the implementation effects of different types of plans later.At the same time,the event research method is used to prove that the introduction of the draft plan can cause short-term reactions in the market.Further,introduce the contents of the fourth phase of the Haier Zhijia Employee Stock Ownership Plan,and evaluate its implementation effects from the four levels of finance,talent innovation,strategic development,market performance,and employee benefits,to answer the first question.Finally,compare the four aspects of the plan’s basic elements,employee selection,launch and purchase timing,and auxiliary incentive measures with the comparative enterprises,and summarize the advantages of Haier Zhijia in the design of the plan,to answer the second question.The research conclusions of this paper are:(1)Most of the listed companies in China have implemented the employee stock ownership plan smoothly,with various types of elements in plans to choose from,but there is a phenomenon of "more losses and less profit" and obvious polarization;the introduction of the draft of the employee stock ownership plan can cause the market short-term response.(2)The fourth phase of the Haier Zhijia Employee Stock Ownership Plan has a positive effect on its financial performance,talent innovation,strategic development,market performance,and employee benefits.(3)From the perspective of scheme design,the reasons for the better implementation of the Haier Zhijia ESOP are: the basic elements(funding sources,leverage grading,and disposal methods)are set up steadily;participating employees are closely related to corporate strategic development;launch and purchase time is appropriate,during the period when the stock price is relatively stable or rising;auxiliary incentive measures such as salary distribution,talent training,and employee incentives are complete.The application value of this paper lies in: providing investors with a method to identify the strengths and weaknesses of a company’s employee stock ownership plan,which helps investors choose the better enterprise stock investment plan;and providing a reference for implementing companies to improve the employee stock ownership plan,which will help enterprises to improve the implementation of the plan;providing a reference direction for strengthening supervision and management for the regulators,which will help build a more standardized and stable market environment.