A Study On The Incentive Effect Of Employee Shareholding Plan Of State-owned Enterprises In The Context Of High Quality Development

The 19 th National Congress introduced the concept of "high-quality development" into the country’s development for the first time,and made it clear that the country’s development will transition from the past high speed to high level and quality development.The only way to ensure the effective utilization of stateowned resources in the new development stage of China is through the high-quality development of state-owned enterprises,which are the stem cells of the national economy and the fundamental support for economic and social growth.In 2015,the CPC Central Committee and The State Council on Deepening the Reform of State-owned Enterprises issued the Guiding Opinions,which is hereinafter referred to as " Pilot opinion”,to advance the reform of these enterprises.After a year,the views on the trial of Employee Stock Ownership in State-owned Enterprises with Mixed Ownership,which is hereinafter referred to as " Guidance”,were presented.were also issued successively,which initiated the reform of employee stock ownership plan,cultivated world-class Few employee stock ownership plans have been put into effect and completed in state-owned enterprises,and many issues have arisen in the course of their implementation.Nevertheless,these plans have established a basis for the high-caliber growth of state-owned enterprises.still face imperfect corporate governance,imperfect incentive mechanism,low efficiency in all aspects,these problems seriously restrict their competitiveness in the process of marketization,and the goal of Chinese stateowned enterprises to achieve high-quality development is,in a way,impacted by these problems as well.The incentive effect of ESOP on state-owned enterprises,to foster the high-quality development of such entities,is of great importance in this context.This paper examines the incentive effect of employee stock ownership plans based on pertinent theories.This paper begins by selecting China Electricity Research Institute as one of the initial pilot enterprises in the new state-owned enterprise.It then provides a case analysis of the employee stock ownership plan implemented in May 2017,and details the content and implementation of the plan.China Electricity Research Institute has taken the second step of examining the impetus and background of the employee stock ownership plan,both internally and externally.Motivating the movement of scientific and technological personnel,cultivating a perfect research team,and augmenting independent research and development are the primary objectives.The following are the primary motivations:to facilitate the movement of scientific and technological personnel,cultivate a flawless research team,and enhance the level of independent research and development of the company;Secondly,to enhance the management atmosphere of listed companies,augment the management decision-making system of listed companies;Lastly,to invigorate the company’s internal enthusiasm,augment the company’s total performance.From the viewpoint of financial performance and nonfinancial performance analysis,then.The employee stock ownership plan was put into effect to significantly enhance the financial performance of the enterprise,though the improvement is only temporary.The company’s independent innovation capability has been greatly enhanced by a substantial increase in R&D investment and the number of patents.The implementation of the employee stock ownership plan has resulted in a decrease in agency cost for the enterprise,a more diversified ownership structure,and an enhanced corporate governance capacity.At the conclusion of the comprehensive study,a few proposals have been put forth.Primarily,the company must bolster the accountability of management,enhance the employee shareholding system,enhance the oversight system,and execute it.From a development standpoint,the company’s operations and management must be continually enhanced;additionally,policy must be continually advanced,stateowned enterprises should receive preferential treatment and policy support,and the company should strive for market-oriented reform.This paper examines the incentive effect of the employee stock ownership plan of China Electric Research Institute,furnishes a reference for the implementation of such plans in state-owned enterprises,and proffers some references and proposals for the selection of high-quality development paths and directions for state-owned enterprises in the future,all based on the concept of "high-quality development".The deficiency of this paper is that the proof strength of a single case is limited,and the breadth and depth of the research are insufficient.As a result,the results cannot be universally applied and the analysis is not thorough enough.