Employee Stock Ownership Program Research Articles

FAKTOR YANG MEMPENGARUHI KINERJA KEUANGAN PADA PERUSAHAAN MANUFAKTUR YANG TERDAFTAR DI BEI

The purpose of this empirical research is to examine about the effect of leverage, firm size, dan employee stock ownership program on financial performance in manufacturing companies listed on the Indonesia Stock Exchange from 2017 to 2020. The data processed with Eviews 12. This research used 70 manufacturing companies for a total of 280 data with a four years period. This reseacrh were selected using purposive sampling method. The results of this research shows that firm size have negative and significant influence on financial performance, employee stock ownership program does not significantly influence financial performance.

Pengaruh Employee Stock Ownership Program (ESOP), Ukuran Perusahaan, dan Struktur Modal Terhadap Kinerja Keuangan Perusahaan Pada Perusahaan Non Keuangan Yang Terdaftar di Bursa Efek Indonesia Tahun 2017-2022

Financial performance refers to the effectiveness of capital utilization and operational efficiency of a company. The fluctuation of a company's revenue and profits will impact its financial performance. However, an increase in revenue doesn't necessarily guarantee a rise in profits. Maintaining a strong financial performance is crucial for a company, as it acts as an attraction for potential investors to invest in the company. This research aims to examine the influence of an employee stock ownership program (ESOP), company size, and capital structure on the financial performance of the company. The research employs a quantitative methodology. Data for the research is obtained from secondary sources, primarily financial reports. The target population consists of non-financial companies listed on the Indonesia Stock Exchange. Data is processed through purposive sampling. The sample size includes 13 companies within the period of 2017-2022, resulting in a total of 78 observations. The research findings indicate that company size and capital structure have a positive impact on the financial performance of the company. Conversely, the employee stock ownership program (ESOP) does not show a significant influence on the company's financial performance.

Pengaruh Employee Stock Ownership Program (ESOP) terhadap Kinerja Bank Syariah Indonesia

and are involved in decision making. One of the compensations is the granting of shares or known as the Employee Stock Ownership Program (ESOP). The existence of ESOPs is expected to provide incentives for employees to increase productivity efforts. The application of ESOPs to performance is associated with agency theory where there is a contractual attachment between principals (shareholders/owners) and agents (management/employees). In this study, the research method used was paired sample t test. It was found that there was an effect of ESOP application on ROA and no effect of ESOP application on PBV.

The Effect of Asymmetry Information, Company Size, Profitability, Leverage and Employee Stock Ownership Programs in Earnings Management

This research aimed to examine the effect of Asymmetry Information, Company Size, Profitability, Leverage and Employee Stock Ownership Programs on Earnings Management. The population used in this research was consumer cyclicals sector companies listed on the Indonesia Stock Exchange (BEI) from 2019 until 2021. Sample was determined by the purposive sampling method. In line with that, there was 57 companies as the sample with 171 observation data. The method of analysis used was multiple regression analysis. Based on the result of testing the hypothesis in this study indicate that Asymmetry Information, Profitability, and Employee Stock Ownership Programs has no effect on earnings management, meanwhile Compnay Size and Leverage has a negative effect on earning management.

DAMPAK ASIMETRI INFORMASI, ESOP, KUALITAS AUDIT TERHADAP MANAJEMEN LABA DENGAN VARIABLE PEMODERASI KESULITAN FINANSIAL

The fundamental purpose of this research is to obtain empirical evidence about the influence of information asymmetry, Employee Stock Ownership Program (ESOP), and audit quality on the practice of earnings management using discretionary revenue components of manufacturing firms in Indonesia and examine the moderating effect of financial distress on these factors. Firms used as references are manufacturing companies in the basic materials, industrials, consumer non-cyclical, consumer cyclical, and healthcare pharmaceuticals sectors listed in the Indonesia Stock Exchange from 2019-2021. This study uses purposive sampling method with panel data moderation and obtains total of 546 sample data units. Based on the research conclusion, information asymmetry can trigger a higher risk of earnings management, while the existence of an ESOP and audit quality can be used to suppress earnings management. Financial distress itself has no direct effect on earnings management. Financial distress has not been proven to strengthen the positive influence of information asymmetry or weaken the negative influence of the ESOP. Meanwhile, the financial distress conditions can weaken the role of audit quality in an effort to minimize earnings management practices of the company.

Pengaruh Employee Stock Ownership Program, Leverage, Ukuran Perusahaan, GCG, Nilai Tukar Dan Pajak Tangguhan Terhadap Kinerja Keuangan Pada Perusahaan Properti Dan Real Estate Yang Listing Di BEI Periode 2016-2020

This research was conducted to analyze the effect of the ESOP Employee Stock Ownership Program, Leverage, Company Size, GCG, Exchange Rates and Deferred Taxes on the Financial Performance of Property and Real Estate Companies Listing on the IDX for the 2016-2020 period. Quantitative approach is the method of this research. The research population totaled 65 Property and Real Estate Companies listed on the IDX for the 2016-2020 period. Using purposive sampling for sampling, the sample in the study amounted to 9 companies. The results show that research on ESOP, Leverage, Company Size, GCG, Exchange Rates and Deferred Taxes have an effect on the Financial Performance of Property and Real Estate Companies Listing on the IDX for the 2016-2020 period. Partial test results show that the Employee Stock Ownership Program (ESOP) has an effect on the financial performance of property and real estate companies listed on the IDX for the 2016-2020 period. Partial test results show that leverage has no effect on financial performance in property and real estate companies listed on the IDX for the 2016-2020 period. Partial test results show that company size has an effect on financial performance in property and real estate companies listed on the IDX for the 2016-2020 period. Partial test results show that GCG has no effect on the financial performance of property and real estate companies listed on the IDX for the 2016-2020 period. Partial test results show that exchange rates have no effect on financial performance in property and real estate companies listed on the IDX for the 2016-2020 period. The results of the partial test show that Deferred Tax has no effect on the Financial Performance of Property and Real Estate Companies Listing on the IDX for the 2016-2020 period.
 Keywords: ESOP, Leverage, Company Size, GCG, Exchange Rate, Deferred Tax

Quo Vadis Employee Participation concerning Share Ownership in Companies in Indonesia

In general, in various companies, workers are rarely considered company assets, so that in various company developments, the role of workers is not an important thing to consider. However, along with the times, workers are then considered as company assets and have even begun to develop in various companies that include workers in share ownership of the company concerned and by participating in company share ownership (ESOP: Employee Stock Ownership Program), thus workers feel become part of the company. Article 43 Paragraph (3) letter a Law no. 40 of 2007 concerning Limited Liability Companies (“UUPT”) basically states that companies can offer shares to their own employees. However, basically there is no obligation for companies to include their workers in the ownership of company shares according to the Company Law. The problems in share ownership in companies for workers are (1) What are the legal problematic dilemmas regarding workers' participation in share ownership in companies in Indonesia? (2) What is the normative regulation of workers' share ownership in a company if it is to be regulated in sources of employment law, both autonomous and heteronomous? . In general, it can be concluded that there are still many obstacles in terms of workers wanting to be included in company ownership because according to laws and regulations participation in company share ownership is not a mandatory thing for companies to do, but must be an initiative of workers' associations and/or unions. Apart from that, there is also the problem of how to regulate normatively related to share ownership in the company for workers so that workers have a legal basis to own shares in the company.

Peranan Employee Stock Ownership Program Memoderasi Hubungan Intellectual Capital Terhadap Kinerja Perusahaan

Company performance is the company's ability to use all funds for operational activities. One of the factors that increase or decrease the company's performance is caused by intellectual capital. Intellectual capital is an asset owned by the company in order to provide a competitive advantage. This study aims to examine and analyze the employee stock ownership program in the relationship between intellectual capital and company performance. This research method uses quantitative descriptive using purposive sampling technique and obtained a sample of 38 with the number of observations of 43 banking companies listed on the IDX in 2017-2019. The data was analyzed using the Partial Least Square approach with the WarpPLS 7.0 test tool. The results show that capital employed has a negative and significant effect on company performance. Human capital and structural capital have a significant positive effect on company performance. Relational capital is stated to have a positive but not significant effect on the company's performance. The implementation of the employee stock ownership program as a moderating variable is used to support employee morale, not being able to influence all components of intellectual capital, but only being able to moderate human capital. The results of this study indicate that human resources are the main component in the development of the banking business, especially the provision of employee stock ownership programs that can improve company performance.

Does employee stock ownership program reduce a company’s stock volatility during the Covid-19 lockdown?

We examine whether the ESOP (employee stock ownership program) has a significant effect on a company’s stock volatility during the Covid-19 lockdown. We find that although banks’ stock prices were more volatile in response to the rise of covid-19 confirmed cases, banks with ESOP showed significantly lower volatility than banks without ESOP. To identify the causal effect of the ESOP implementation, we use the ESOP-culture-index of each country as an instrumental variable.

The Effect of the Employee Stock Ownership Program and Growth on Return On Equity (Case Studies in Manufacturing Companies Listed on the Indonesia Stock Exchange in 2015-2019)

The purpose of this paper to examine the effect of ESOP and growth on financial performance. The financial performance used ROE method with dupont system. Financial performance is a description of Condition Company to assess profitability and return on equity. Financial performance can be influenced by many factors, that is ESOP and growth. The paper includes a conceptual as well as empirical analysis, in which data from a sample of listed manufactur firms for the period from 2011 to 2015. The method of this paper is descriptive and verifikatif, method to describe research variables and explain the relationship between variables with hypothesis testing. Data analysis technique is panel data model, use F test and T test.The result of study are the highest average ROE values ​​were in 2015 and 2016 and the lowest average ROE values ​​were in 2019. The average ESOP growth each year is the same. The highest average value of growth was in 2015 and the lowest average value of growth was in 2018. ESOP and Growth simultaneously have a significant effect on ROE. Partial effect of ESOP and Growth on ROE.  ESOP has a significant negative effect on ROE. Growth has a negative and insignificant effect on ROE Future research can examine other variables, such as funding policies, ownership structures, intellectual capital and good corporate governance. Researchers can take samples in other sectors, such as financial and insurance sector, service sector, property sector, or industry sector also.

Does Employee Stock Ownership Program Reduce a Company's Stock Volatility during the COVID-19 Lockdown?

Does Employee Stock Ownership Program Reduce a Company's Stock Volatility during the COVID-19 Lockdown?

EMPLOYEE STOCK OWNERSHIP PROGRAM (ESOP) DAN NILAI PERUSAHAAN DENGAN PROFITABILITAS SEBAGAI VERIABEL INTERVENING

This study aims to investigate the effect of the employee stock ownership program (ESOP) on profitability and firm value. In addition, this study also aims to see the mediating effect of profitability on the effect of ESOP on firm value. This research was conducted on manufactures listed on the Indonesia Stock Exchange (BEI) during 2015-2019. The data analysis technique in this study used the PLS (Partial Least Square) method. The results of this study indicate that the results of this study indicate that profitability partially mediates the effect of ESOP on firm value. This study also found that ESOP has a positive effect on profitability and firm value. This study also found the same thing for the effect of profitability on firm value.

Pengaruh Employee Stock Ownership Program Terhadap Average Abnormal Return Perusahaan Perbankan

This research was conducted to see the effect of the implementation of the Employee Stock Ownership Program on average abnormal returns of banking companies before and after applying ESOP and trading volume. The aim is to find out the difference in average abnormal return before and after applying the ESOP. The variable used in this study is average abnormal return. The period of this research event is 20 days, 10 days, 5 days and 1 day which are divided before and days after the date of application. This study examines banking companies that apply the Employee Stock Ownership Program listed on the Indonesia Stock Exchange so that data is obtained from trading in the company's stock price. The sampling criteria used a purposive sampling method in order to obtain 9 samples. The hypothesis method used in the normally distributed data is Paired Samples T-test. The result is that all average abnormal return periods both on the first and the last date of the ESOP application have a significant value >0.05, which means that the entire event period of the variable is proven to have no significant difference both before and after the banking company applies the Employee Stock Ownership Program.

Analysis of The Influence of Employee Stock Ownership Program (ESOP) Application of Company Financial Performance

This study aims to examine the effect of implementing the Employee Stock Ownership Program (ESOP) on the company's financial performance. and differences in the company's financial performance when issuing ESOPs and not issuing ESOPs. The implementation of ESOP is proxied by the proportion of ESOP and the price of execution, the company's financial performance is proxied by ROE, NPM, and OPM. The research was conducted on companies listed on the IDX and have adopted the ESOP in 2012 to 2016. The sampling method uses purposive sampling. To test the effect of applying ESOP on performance. The results of this study indicate that the number of ESOP Provisions given has no effect on ROE, NPM, and OPM. ESOP execution prices affect the value of ROE and NPM but do not affect the value of OPM. There is no difference in the value of ROE, NPM, and OPM when the company issues ESOP and does not issue ESOP.

EMPLOYEE STOCK OWNERSHIP AS STRATEGY TO IMPROVE EMPLOYEE PERFORMANCE (CASE OF BANK SYARIAH MANDIRI YOGYAKARTA)

The purpose of this study is to analyze the influence of Employee Stock Ownership Program (ESOP) phenomena on employee performance, which can be used as an alternative in conducting a strategic issue by the management of sharia banks and also as an addition to the science horizon through the scientific work that researchers examine. The results of this study can then be arranged as a strategic target related to company resources and competitiveness in increasing competition in the financial industry. This research uses descriptive qualitative research using convenience sampling as a technique of collecting data from a total of 13 informants who are employees of PT Bank Syariah Mandiri Area Yogyakarta and its branch offices with different field positions using interviews as the primary data, with questionnaires and observations as supporting data. The results of this study showed that 31% of informants knew details about the capital market and information about Employee Stock Ownership Program, 61% knew partially, and 8% did not know. The majority of informants (employees) as much as 69% were positively enthusiastic about the enactment of the Employee Stock Ownership Program, and 54% of the total informants expressed interest and wanted to own shares of the company where they worked. The researcher also found data that was of a view and mass perspective as much as 77% Employee Stock Ownership Program had a positive effect on employee performance.

Kinerja Perusahaan sebagai Pemediasi Pengaruh Penerapan Employee Stock Option Plan (ESOP) pada Nilai Perusahaan

Limited liability company (Ltd) based on a contract cooperative relationship which is the basis of agency theory with the risk of conflict. The solution to minimize is the employee stock ownership program with the Employee Stock Option Plan (ESOP) strategy. The purpose of this study is to obtain empirical evidence of the relationship of stock options granted’s number to the firm value through firm performance. This research was conducted at companies listed in the BEI and conducted ESOP grants in 2014-2018. Samples obtained using purposive sampling were 48 observations. Data analysis technique used is path analysis. The results showed that the number of stock options granted had a positive effect on firm performance, firm performance had a positive effect on firm value, the number of shares options granted had a positive effect on firm value, and firm performance mediated the relationship between the number of shares options granted and firm value.
 Keywords: Employee Stock Option Plan; Firm Performance; Firm Value.

The Determinants of the Adoption of Employee Stock Ownership Programs

The Determinants of the Adoption of Employee Stock Ownership Programs

Turning employees into owners

Purpose The purpose of this paper is to review and analyze policies where employee share ownership might be relevant to the inequality debate in the USA. Design/methodology/approach Description and analysis of policy alternatives designed to increase the prevalence of employee ownership in the USA economy. Findings Since 1974, Congress has passed many provisions to encourage employee ownership, all with widespread bipartisan support. Additional policies would have an even greater impact. Congress could “level the playing field” for corporate divestitures and sales of companies by private equity firms; create Employee Ownership Investment Corporations, modeled after Small Business Investment Corporations, to provide capital for sales to employees; and create an Employee Equity Loan Program to guarantee loans for employee-ownership transactions. Such measures would have no budgetary impact. It could also create tax incentives to encourage corporate and private-equity sales to employees and establish regulations to ensure that employee-owned companies are eligible for the full benefit of recent opportunity zone legislation. Legislation could also encourage publicly traded companies to offer stock to employees at a discount and require companies that receive various forms of special treatment from the government to establish employee stock-ownership programs. Originality/value The academic journal literature has virtually no policy analyses on employee share ownership.

Faktor-faktor yang mempengaruhi profitability pada perusahaan manufaktur di bursa efek indonesia

The purpose of this research is to obtain empirical evidence about the effect of employee stock ownership program, company efficiency, financial leverage, liquidity, and firm size on the profitability of manufacturing industries listed on the Indonesia Stock Exchange in the period 2015-2017. This study used 64 samples companies that have been selected through a purposive sampling method for three years. The data used were secondary data in the form of financial information from the financial statements and annual reports. The research data was processed using Eviews 10. The results of the research showthat firm size has an effect on profitability, while employee stock ownership programs, company efficiency, financial leverage, and liquidity have no effect on profitability. Suggestions that can be given are for further research to be expected to use other independent variables such as corporate governance, operating cash flow, cash holding, inventory turnover, and net profit margin that may show better results.

Pengaruh Program Kepemilikan Saham Karyawan Terhadap Kinerja Keuangan Perusahaan Publik di Indonesia

Based on the Agency Theory, management (agent) is a party that is trusted by shareholders (principals) to manage the company and maximize shareholders’ value (Jensen and Meckling, 1976). In practice, conflicts between shareholders and managers are unavaidable because of differences in interests and information asymmetry called Agency Problem. One way to minimize agency problem is by applying Employee Stock Ownership Program (ESOP) which gives rights to company’s employees to own company’s share. Through ESOP, employees are expected to improve the performance and value of the company due to their stock ownership. The purpose of this study was to analyze the effect of the implementation of the ESOP program on company financial performance especially profitability as measured by ROE (Return on Equity) and ROA (Return on Assets). This study analyzes 62 listed companies in Indonesia adopting ESOP for the first time over 2009-2016. By using panel data regression method, the results of the study show that ESOP program has a significant negative effect on the profitability of the company.