Research On The Effect Of SIPG’s Implementation Of Employee Stock Ownership Plan Under The Mixed Reform

Mixed ownership reform is one of the important contents of SOE reform.After the Third Plenary Session of the 18 th CPC Central Committee proposed the mixed-ownership reform policy,the China Securities Regulatory Commission issued relevant guidance on employee shareholding,as the most important path for mixed-ownership reform—employee shareholding re-entered the market.As one of the paths of mixed ownership reform of state-owned enterprises,ESOP has been continuously explored by domestic experts and scholars based on foreign research conclusions and the status quo of the socialist market with Chinese characteristics.Using principal-agent theory,human capital theory and other theoretical foundations,from the perspective of universality,this paper compares the three paths of mixed ownership reform of state-owned enterprises: operation listing,introduction of strategic investors,and ESOP.Among them,ESOP is changing.While the ownership structure can improve the corporate governance structure,it is very popular in the mixed-ownership reform.With the help of the case study of SIPG,this paper introduces the ESOP plan from the perspectives of stock ownership period,price and implementation process,with the intention of solving and proving three problems: the motivation,implementation effect and successful experience of state-owned enterprises implementing ESOP.In order to improve the company’s internal governance structure,attract talents to promote development,and ease debt,SIPG actively responded to the mixed-ownership reform policy and implemented an employee stock ownership plan.Looking at the effect of employee stock ownership in terms of talents,innovation,investor response,financial indicators,etc.,through the comparison of SIPG before and after the implementation of ESOP,it is found that after the implementation of the employee stock ownership plan,the employee turnover rate of SIPG has decreased.The number of highly educated talents and technical jobs has gradually increased,and the number of patent applications has increased year by year.Investors have recognized and supported this plan.The solvency and profitability have improved in the first two years of the official implementation of ESOP,even in the next two years.The decline is still higher than the level before the implementation of employee stock ownership.As for operating capacity,indicators such as corporate inventory turnover rate have continued to develop steadily,and are not significantly affected by ESOP.In general,SIPG piloted the employee stock ownership plan,which enhanced the competitiveness of the enterprise and stabilized its position in the port transportation industry.Based on this,this paper summarizes some successful factors that are suitable for enterprises to implement ESOP: a high degree of employee participation The effect of implementing the employee stock ownership system will be better in the enterprises of different levels.On behalf of employees at different levels,employees at different levels actively subscribe for shares,and the interests of employees at all levels are convergent,so that the plan can bring out the best benefits.Enterprises with fierce competition in the industry can also give full play to the incentive effect of employee stock ownership.The implementation of employee stock ownership in fiercely competitive enterprises can enhance employees’ sense of belonging,enhance corporate honor,improve employees’ work enthusiasm,and establish a mechanism of interests between employees and enterprises.Together.The larger the company is,the more likely it is to "free-ride" behavior,which is not conducive to the implementation of employee stock ownership plans under the condition of immature regulatory mechanisms.The length of the duration will affect the effect of employee stock ownership because the short-term duration will produce arbitrage behavior,which goes against the long-term incentive goal of the employee stock ownership plan.Therefore,before implementing an employee stock ownership plan,an enterprise should fully understand the policies and employees’ wishes,set a reasonable duration,and formulate the period and price of employee stock ownership in light of the actual situation of the enterprise,hoping to motivate employees,improve the shareholding structure,and improve corporate governance.mode to achieve the goal of mixed reform.