Abstract
This paper selects the 2014-2018 Shanghai and Shenzhen A-share listed companies as a sample to study the impact of employee stock ownership plans on corporate innovation and finds that compared with companies that have not implemented employee stock ownership plans, the implementation of employee stock ownership plans can promote corporate innovation. The mechanism inspection found that employees mainly play the role of “executors” in enterprise innovation, and they have not promoted enterprise innovation investment. In addition, based on the characteristics of employees, this article finds that when the growth rate of employees is low and the composition of highly educated employees is relatively high, the implementation of employee stock ownership plans will have a greater impact on corporate innovation. This article enriches the research on the influencing factors of enterprise innovation with employees as the main body, and has certain guiding significance for improving the design of employee stock ownership system and promoting enterprise innovation and development.
Highlights
The report of the 19th National Congress of the Communist Party of China pointed out that “China’s economy is in a critical period of transformation of growth mode and optimization of economic structure.” At this stage, enhancing the independent innovation capability of enterprises and promoting enterprise upgrading is the only way for China’s economy to achieve high-quality and sustainable development
The mechanism inspection found that employees mainly play the role of “executors” in enterprise innovation, and they have not promoted enterprise innovation investment
This article takes the country’s increasing emphasis on corporate innovation as a background and takes the Shanghai and Shenzhen A-share listed companies from 2014 to 2018 as a sample to examine the impact of employee stock ownership plans on corporate innovation
Summary
The report of the 19th National Congress of the Communist Party of China pointed out that “China’s economy is in a critical period of transformation of growth mode and optimization of economic structure.” At this stage, enhancing the independent innovation capability of enterprises and promoting enterprise upgrading is the only way for China’s economy to achieve high-quality and sustainable development. Since the end of 2017, more than 20 companies in the A-share market have terminated their employee stock ownership plans It is the focus of this article to explore whether the employee stock ownership plan can help to stimulate corporate innovation, and whether there are differences in the role of employee characteristics and ESOP system design elements in promoting corporate innovation. This paper uses China’s Shanghai and Shenzhen A-share listed companies as a research sample to explore the impact of employee stock ownership plans on corporate innovation, and explore the differences in employee characteristics on the results of the implementation of employee stock ownership plans, and enrich the research perspectives on factors affecting corporate innovation
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