Research On The Incentive Effect Of Employee Stock Ownership Plan Of Venustech Group Inc

The employee stock ownership plan was first proposed by American lawyer Louis Kelso,with the purpose of mainly making to alleviate the problem of capital ownership concentration in American enterprises and enable workers to also participate in the income distribution of enterprises.The initial development of China’s employee stock ownership plan was suspended in 1993 due to the imperfect policy system and lack of corresponding supervision,and in 2014,the Securities Regulatory Commission issued the "Guidance on the Implementation of Employee Stock Ownership Plan Pilot Program for Listed Companies",and China’s employee stock ownership plan was officially restarted and developed rapidly.Currently,employee stock ownership plan has become a favored incentive tool for many listed companies,and with the anti-war of employee stock ownership plan,there are more and more zero-cost employee stock ownership plans in the capital market,and for the majority of employees,this special incentive program can get a certain share of equity without paying any price.There is no systematic research on the incentive effect of such employee stock ownership plans in academia.Therefore,it is important for this thesis to make a detailed study on the incentive effect of Venustech Group Inc’s zero-cost employee stock ownership plan.In this thesis,we review relevant domestic and international studies and choose Venustech Group Inc,a high-tech enterprise,as the case company.Firstly,this thesis introduces the background of Venustech employee stock ownership plan,among them,the motivation of Venustech to implement the zero-price employee stock ownership plan was analyzed,and the comparison of the three phases of employee stock ownership plans was carried out.Secondly,this thesis analyzes and summarizes the incentive path of the employee stock ownership plan.On this basis,this thesis conducts an in-depth discussion on the incentive effect brought by Venustech Group Inc’s zero-price employee stock ownership plan through four aspects:market response,innovation performance,governance performance,and financial performance.Finally,based on the entropy weight TOPSIS method,innovation performance,governance performance and financial performance indicators are selected to comprehensively evaluate the incentive effect after the implementation of zero-price employee stock ownership plan.Through the comparison of Venustech Group Inc’s zero-price ESOP,its own non-zero-price ESOP and ESOP of Gosuncn Technology Group Co.,Ltd.,this thesis finds that the company’s implementation of the zero-price ESOP has not achieved the expected incentive effect.Although the market responded positively on the day when the company announced the zero-price employee stock ownership plan,the market reaction was not as positive as when the company’s non-zero-price employee stock ownership plan was released.After the company implemented the zero-price employee stock ownership plan,the company did not achieve relatively good innovation output,and the level of corporate governance was not better improved,and the incentive effect on the company’s financial performance was not as good as that of the non-zero-price employee stock ownership plan.Finally,using the entropy-weight TOPSIS method to comprehensively score the performance after the implementation of the zero-price employee stock ownership plan,it is found that the comprehensive performance score has dropped significantly compared with that before the implementation.This article aims to provide effective suggestions for companies planning to implement employee stock ownership plans,and to enrich research on employee stock ownership plans.