Study On The Effect Of ESOP In Auto Parts Enterprises

In recent years,with the rapid development of new energy vehicles,the auto parts industry has shown a trend of intelligent manufacturing upgrading.Enterprises have an increasingly urgent need for high-quality and creative talents.The introduction of innovative talents and the establishment of core talent teams has become an important link in the sustainable development of auto parts enterprises.However,many auto parts enterprises have a single incentive method for talents.The role of traditional incentive methods is not significant.As a long-term incentive method,ESOP enables employees to hold shares of the company and build a benefit relationship between employees and enterprises that can share risks.More and more auto parts enterprises begin to implement ESOP.As a high-tech enterprise with auto parts as its main business,Longsheng Technology Company has the characteristics of knowledge and technology.The company has a large number of participants in the implementation of employee stock ownership plan,and the number of shares held accounts for a large proportion of the total share capital of the company.Therefore,this case has certain research value.This thesis takes Longsheng Technology Company as a case study,and based on relevant theories,explores the impact path of ESOP implementation in auto parts enterprises.And the thesis uses entropy method,efficiency coefficient method,event study method and other methods.In addition,this thesis analyzes the effects of employee incentive dimension,R&D innovation dimension,financial performance dimension and market response dimension,and draws some conclusions.(1)The participants of Longsheng Technology Company’s two phases of ESOP have achieved high returns,and The index of income generation and profit generation is also rising year by year,which has an incentive effect on employees;(2)After the implementation of ESOP,the innovation efficiency and innovation output of Longsheng Technology Company still show a downward trend,which has no significant effect on R&D innovation;(3)The implementation of employee stock ownership plan is conducive to the reduction of agency costs and the improvement of financial performance of Longsheng Technology Company;(4)After Longsheng Technology Company issued the announcement of the draft ESOP,the stock price of the company increased in a short period of time.The design aspect of Longsheng Technology Company’s employee stock ownership plan also includes such problems as short duration of stock ownership plan,lack of performance evaluation indicators for employees and insufficient investment ability of employees.In view of the deficiencies in the design of employee stock ownership plan,this thesis puts forward some suggestions such as extending the performance appraisal period and setting up management committee.