A Study On The Implementation Effect Of Esop In Hunan Haili

The report of the 20th National Congress of the Communist Party of China proposed the requirement to deepen the reform of state-owned assets and enterprises,accelerate the optimization of the layout and structural adjustment of state-owned economy,promote the state-owned capital and enterprises to become stronger,better and bigger,and enhance the core competitiveness of enterprises.This is mainly due to the prominent problems of the relatively backward development of state-owned economy and the lack of vitality of state-owned enterprises.Therefore,relevant government departments have attached importance to the employee shareholding plan again and issued a series of policy regulations and guidance,making it a hot topic in the society as one of the important ways to deepen the mixed ownership reform of state-owned enterprises.Meanwhile,the "14th Five-Year Plan" issued by the National Development and Reform Commission and other departments proposes to further reduce the use of pesticides and fertilizers and improve the utilization level of agricultural waste resources,which puts higher requirements on the production technology and corporate governance level of the pesticide industry and pesticide-producing enterprises.However,due to the problems of unclear incentive effects and lack of outstanding effects of deepening the reform in the previous implementation of the employee shareholding plan,it is urgent to improve the relevant theories and program design of the employee shareholding plan,and provide experience reference for other state-owned enterprises.Hunan Haili Chemical Co.,Ltd.is one of the first chemical enterprises to adopt an employee shareholding scheme as part of the mixed ownership reform.This study takes Hunan Haili as a case study and,after reviewing relevant literature and clarifying key concepts,combines the principal-agent theory,human capital theory,two-factor theory,and profit sharing theory.Firstly,it introduces the process and scheme of the employee shareholding plan implemented by Hunan Haili.Secondly,it analyzes the driving forces behind the implementation of the employee shareholding plan.Finally,it evaluates the implementation effects of the employee shareholding plan in terms of market response,financial performance,shareholder wealth,and non-financial performance using event study methodology,financial indicators,entropy method,economic value added,and non-financial indicators.Based on the research findings,several key points emerge.Firstly,following the implementation of the employee shareholding plan,the capital market responded optimistically with a significant increase in stock prices during the window period,resulting in certain excess returns for the shareholders of Hunan Haili.Secondly,in the long term,Hunan Haili experienced significant improvements in its financial performance,with varying degrees of growth in profitability,solvency,operational efficiency,and development capacity.The comprehensive evaluation value,obtained by integrating these four dimensions using the entropy method,also exhibited a clear upward trend,indicating the positive implementation effects of the employee shareholding plan on financial performance.Thirdly,there was a noticeable increase in shareholder wealth,measured using the economic value added indicator.The research demonstrates that the implementation of the employee shareholding plan led to a certain growth in economic value added,effectively promoting the growth of shareholder wealth.Fourthly,the employee shareholding plan implemented by Hunan Haili enhanced employee motivation,improved management efficiency,and stimulated innovation capabilities within the company.Overall,the implementation effects of the employee shareholding plan were positive.