The Impact Of Sankeshu Employee Stock Ownership Plan On Enterprise Performance

China’s Securities Regulatory Commission began to introduce a regulated policy on employee share ownership plans for listed companies in 2014,followed by numerous companies responding to the policy and employee share ownership plans kicked off in China.After more than a decade of development,the number of enterprise employee share ownership plans implemented reached a peak in previous years.Enterprises are increasingly aware that employees are the important human capital of enterprises,and that the continuous development and innovative contribution of employees are closely linked to the performance of enterprises,and that enterprises allocate equity to employees,who enjoy a full distribution of the remaining profits of the enterprises,combining the interests of employees and companies,prompting employees to care more about the The overall situation of the company,more committed to work,improve the productivity of the enterprise,and promote the transformation and upgrading of the enterprise.There are various forms of employee share ownership plans,most of which are traded through secondary market purchases,with the corresponding shares held to obtain the corresponding rights and interests.According to incomplete statistics,between 2019 and 2022,a total of 1,302 companies in China have carried out employee share ownership plans,and there is a trend of growth.However,there are still some companies in China whose employee share ownership plans are only short-term stays,and the relevant incentive system is just a walk in the park and does not have a substantial incentive effect.What is the correlation between employee share ownership policy and the performance growth effect of the entity company,and the influence mechanism between the two,becomes the focus of this paper.In this paper,Sankooshu Paint Co.Ltd.is selected as the main case study.On the one hand,Sankooshu has implemented five employee share ownership plans so far in 2018,which is in line with the development orientation of long-term incentives.On the other hand,the number of participants in Sankeshu’s employee share ownership plan has been climbing year by year,reflecting the importance Sankeshu attaches to its employees,which is of some relevance.The research contribution of this paper may be reflected in the following aspects:on the one hand,it explores the role of the principal-agent theory,technological innovation theory and human capital theory in the application mechanism of employee share ownership plan from three perspectives,conducts an indepth study on the theoretical outline of employee share ownership and explores its relevance to corporate performance;on the other hand,it analyses the different funding sources of employee share ownership plan and stock On the other hand,the current situation of China’s employee share ownership plans was studied in terms of different funding sources and share plans,and the main case study was selected to analyse the five phases of its employee share ownership plan,introducing the Balanced Scorecard performance evaluation method and selecting financial indicators,internal business dimension indicators,learning and growth indicators and customer dimensions.The study still found that the employee share ownership plan had a significantly lower impact on performance in the past two years,probably due to the impact of the epidemic factor,which increased the overall operating costs of the company and reduced the company’s operating performance.the success of the employee share ownership plan is not only due to the importance that management attaches to human resources,it is still important to balance long-term incentives with the business risks of the company,reduce the risk of high leverage and effectively improve the institutional provisions of the relevant employee share ownership plan.It is important to protect the legitimate gains of employees,but also to pay attention to the phenomenon of excessive personal interest of employees,and to strengthen and improve the internal oversight body of the company in order to fundamentally have a positive impact on the performance of the company.