Research On The Impact Of The Implementation Of Employee Stock Ownership Plan On Corporate Financial Performance

With the advent of the 21 st century and China’s successful accession to the WTO,China’s economy has been increasingly affected by the world economic environment.Since the last century,American lawyer Rosenwald proposed the employee stock ownership plan,Chinese enterprises have continued to study and explore the employee stock ownership plan,and strive to find a road suitable for China’s national conditions and current situation.As a long-term incentive system,the employee stock ownership plan can enable employees and owners to share the future income and ownership of the enterprise,improve employee enthusiasm and exert the value of human capital through equity incentives,so as to achieve the consistency of interests of employees and enterprises.In 2014,the China Securities Regulatory Commission(CSRC)issued the Guiding Opinions on the Implementation of Employee Stock Ownership Plans by Listed Companies(hereinafter referred to as the "Guiding Opinions"),which regulated the implementation of employee stock ownership plans of listed companies.In the past decade,employee stock ownership plans have become popular,providing a new governance path for listed companies.As a leading enterprise in China’s adhesive industry,Huitian New Material has been facing problems such as weak market competitiveness and serious lack of talents since its listing on China’s Growth Enterprise Market in 2010,especially the phenomenon of competition in the same industry after the resignation of enterprise executives and technical personnel.In order to ensure the implementation of the company’s future business strategy,the continuous expansion of talent reserves and the continuous innovation of high and new technologies,Huitian New Materials has implemented three phases of employee stock ownership plans in 2016,2020 and 2022.This paper selects the financial data of Huitian New Material from 2012 to 2021,constructs an evaluation system through financial index analysis and economic added value(EVA)analysis,adopts a number of financial indicators,deeply studies the profitability,operating ability,solvency and development ability of Huitian New Material,and introduces the industry average corresponding age as an industry index,and comprehensively evaluates the impact of employee stock ownership plan on the financial performance of Huitian New Material through vertical and horizontal dimensions.Finally,based on the above analysis,the conclusions are concluded,the shortcomings of the employee stock ownership plan of Huitian New Material are summarized,and optimization suggestions are put forward from the perspectives of the scope of participants,the holding period,and the source of funds.This paper argues that although the employee stock ownership plan of Huitian New Materials has a significant positive impact on the financial performance of enterprises,there are still many shortcomings in the system setting,such as the small scope of participants,unclear equity content,relatively short holding period,relatively low shareholding shareholding,insufficient spontaneous participation of employees,difficulty in financing,and single source of funds,resulting in the incentive effect of the employee stock ownership plan not achieving the expected effect.In this regard,this paper puts forward the following suggestions: expand the scope of incentives for participants,and improve the selection mechanism of incentive targets to ensure that the rights and interests of incentive targets are clear and true and not infringed;At the same time,the shareholding period is set to 6 years and the shareholding ratio is increased to ensure that the shareholding plan achieves a satisfactory incentive effect;Finally,optimize the source of funds,build a diversified unlocking system and assessment system,make the unlocking conditions more flexible,and the assessment mechanism more fair and effective,in order to optimize the future design of the employee stock ownership plan of Huitian New Materials,and provide experience and reference for enterprises in the adhesive industry and even other industries.