Research On The Impact Of Employee Stock Ownership Plan On Enterprise Innovation By Kingfa Sci.& Tech

In the report of the 20 th National Congress of the Communist Party of China,it proposed that "the core position of adhering to innovation in the overall situation of my country’s modern construction" and "strengthening the position of corporate scientific and technological innovation".Therefore,actively promoting corporate innovation is the only way to achieve high-quality development.Excellent human resources can enable enterprises to maintain core competitiveness and play market advantages in the development process.How to play the competitive advantage of innovative talents is essential for enterprise development.In this context,more and more enterprises use employee shareholding plans to motivate employees.This system was implemented in China in the 1980 s and 1990 s,and was later suspended.With the introduction of the Guidance on the Implementation of Pilot Employee Stock Ownership Plans for Listed Companies promulgated by the CSRC in 2014,the system is officially on track,while requiring continuous exploration and research.This article selects leading companies in the modified plastic industry-Kingfa Sci.&Tech as the research object.First of all,introduce cases from the company’s profile,the implementation of the employee shareholding plan,the characteristics of implementation,and the reasons for implementation;second,combined with the quantitative and qualitative methods,the specific indicators are analyzed,and the impact of output.Use DEA to analyze the efficiency of innovation,and calculate innovative performance through comparison of the same industry and entropy rights law to analyze its results.Therefore,it is more intuitive to obtain the conclusion costs,risk bearing,and human capital perspective verify the path of employee holding plan affecting the performance of Kingfa Sci.& Tech’s innovation performance;finally,on the basis of the full text,we have made several suggestions on how my country’s employee shareholding plan promotes corporate innovation.Through analysis and research,the research conclusions of this article are as follows:(1)Employee stock ownership plan encourages high-tech enterprises to increase R&D investment,so as to improve their innovation ability.(2)Employee stock ownership plan promotes enterprise innovation by reducing agency costs,enhancing risk bearing ability and improving human resource quality.(3)ESOP can promote high-tech enterprises to improve innovation efficiency and R&D output,which is reflected in the increase in the number of patent applications,the improvement of patent application quality,the increase of per capita income and the improvement of market position.(4)High-tech enterprises need to design reasonable and targeted employee stock ownership plans,so as to enhance the sustainability of the positive effect of employee stock ownership plans on enterprise innovation.This paper provides an in-depth analysis of the specific case of Kingfa Sci.& Tech and suggests targeted improvements that can serve as a reference for other companies implementing employee stock ownership plans.