Research On The Implementation Motivation And Effect Of Jolywood’s ESOP

The employee stock ownership plan is a new incentive system that transfers the company’s shares to employees at the original price or gives certain concessions to coordinate the interests of the company and employees.Since the guidance issued by the CSRC in 2014,the employee stock ownership plan has entered the stage of standardized development in China.As of December 2022,1390 listed companies have issued employee stock ownership plans,with a total fund of nearly 200 billion yuan.With the rapid development of China’s photovoltaic industry,the increasing competitive pressure and the continuous upgrading of technology,it is urgent to attract more high-quality talents with R&D talents to join the production and operation activities of enterprises.In 2015,the employee stock ownership plan was first implemented,and it was implemented three times in a row from 2019 to2020.In this regard,this paper takes Jolywood as the case analysis object,through in-depth study of domestic and international academic achievements,using case study method and comparative analysis method to carry out specific analysis on the motivation and effect of implementing the employee stock ownership plan,and explores its deep motivation and the impact mechanism on market reaction and corporate performance after implementation.Then summarize the experience from the company level and the government level to provide reference for the further improvement and development of the employee stock ownership system.The research in this paper finds that from the perspective of implementation motivation,under the pressure of competition,the implementation of employee stock ownership plan can stimulate employees ’ fighting spirit,condense team spirit,enhance the comprehensive strength of enterprises and alleviate the pressure of competition.Incentive motivation is the basic motivation.In addition,there are market value management motivation and self-interest motivation of major shareholders.From the perspective of implementation effect,the implementation of employee stock ownership plan will have a positive impact on stock price in the short term.According to the research of EVA analysis method and entropy weighting method,it is concluded that the employee stock ownership plan with complexity motivation weakens the incentive effect,only improves the company performance in the short term,and the long-term incentive effect is not obvious.