Employee Stock Ownership Plans for Tobacco Concept Stock Listed Companies and Corporate Innovation Investment

2021 ◽  
Vol 7 (5) ◽  
pp. 1389-1405
Author(s):  
Fu Cheng ◽  
Shanshan Ji
Keyword(s):  
Listed Companies ◽  
Stock Ownership ◽  
Research Subject ◽  
Case Study Method ◽  
Employee Stock Ownership ◽  
Stock Ownership Plans ◽  
Employee Stock Ownership Plans ◽  
Corporate Innovation ◽  
Before And After

In this study, we discussed the influence of employee stock ownership plan (ESOP) on innovation investment in Chinese tobacco concept stock listed companies. Methods: we firstly performed empirical research method to investigate the differences in innovation investment between companies implementing ESOPs and companies not implementing ESOPs by using the panel data of tobacco concept stock listed companies from 2014 to 2020. Secondly, we further performed case study method to test the changes in innovation investment of tobacco concept stock listed companies before and after implementing ESOPs by choosing Hengfeng Paper as a research subject. Results: In tobacco concept stock listed companies, companies implementing ESOPs had higher level of innovation investment than companies not implementing ESOPs. After implementing the ESOP, Hengfeng Paper significantly increased its investment in innovation. Conclusion: In tobacco concept stock listed companies, the implementation of ESOP with ordinary employees as the main incentive object helps to promote innovation investment.

Employee Incentive ESOPs: An Equity Tool to Promote Engagement and Performance

2022 ◽  
pp. 088636872110708
Author(s):  
Trevor J. Gilmore
Keyword(s):  
Succession Planning ◽  
Baby Boomer ◽  
Stock Ownership ◽  
Baby Boomer Generation ◽  
Employee Stock Ownership ◽  
Stock Ownership Plans ◽  
Employee Stock Ownership Plans ◽  
And Performance

Employee stock ownership plans (ESOPs) are experiencing renewed interest in America. In recent years, new ESOP formation was largely driven by the aging of the Baby Boomer generation (widely defined as those born between 1946 and 1964), and their desire to liquify their ownership in closely held businesses while rewarding their employees. There are other new forces driving this trend—the quest for equitable solutions for the growing divide between have and have-nots, the need for employers to retain and reward employees in a competitive talent market, and succession planning. In this article, I will discuss how an Employee Incentive ESOP can be used to promote performance and engagement in a broad-based manner.

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