Research On The Impact Of Multi-period Employee Stock Ownership Plans In Family Businesses On Corporate Performanc

2014 securities regulatory commission issued "on the listed company’s employee stock ownership plan pilot guidance",points out that the employee stock ownership plan is helpful to establish and perfect the mechanism of sharing the interests of the owners and employees,improve corporate governance,improve staff cohesion and corporate competitiveness,for optimal allocation of social capital through capital market.Employee stock ownership plan,therefore,has become an important means of listed companies in our country,especially the reform of state-owned enterprises,with the development of private economy,make a large contribution to society of family business and economic status rise,scale continues to expand,the original management mode can’t meet the complex operating mechanism,the enterprise through employee shareholding way to realize the transformation of development.However,due to the characteristics and inherent limitations of family enterprises,there are also some problems in the process of implementation,such as serious floatation and loss of the plan,internal benefit transmission and insufficient employee incentive.Therefore,to analyze the mechanism of ESOP on performance and take effective measures to guarantee the implementation of the plan has become an urgent issue to discuss and solve.This paper takes peach and plum bread as the case study object.On the basis of literature review and theoretical research,a theoretical research framework is established based on twofactor theory,human capital theory and principal-agent theory,which consists of three aspects:market response,employee incentive and corporate governance.Event study method and index comparison method were used to analyze the motivation of the implementation of employee stock ownership plan for Peach and Plum Bread,the differences after dynamic adjustment of each plan and the performance after implementation.At last,based on case analysis,the author puts forward some suggestions according to the development status of ESOP in our country.This paper studies the effect of employee stock ownership plan on enterprise performance and finds that in terms of market reaction,by sending positive signals to the outside,the multiperiod employee stock ownership plan has a significant positive impact on the short-term stock market,while the positive impact on the long-term stock market is weakened.Compared with one-time incentive,the multi-period employee stock ownership plan has a better long-term effect.In terms of enterprise operation,the production efficiency of employees is improved,the production cost is reduced,the inventory management efficiency is improved,the operation risk is reduced,the final profitability is significantly improved,the debt paying ability is continuously enhanced,and the operation ability and development ability are further developed;At the corporate governance level,the formation of diversified ownership structure,the reduction of ownership concentration,the improvement of ownership checks and balances,the reduction of agency costs,the improvement of employees’ right of discourse and supervision,and the continuous optimization of corporate governance structure.The research significance of this paper is to take the multi-period employee stock ownership plan as an example to analyze the implementation motivation and specific effects of the long-term incentive plan in the process of dynamic adjustment,to seek an effective way to implement the employee stock ownership plan in family enterprises,and to provide practical guidance.