Employee Stock Ownership Plans and Stock-price Informativeness

IF 2.9 2区 经济学 Q1 ECONOMICS
Yuehua Zuo, Xin Huang, Xiaojun Liu, Yunhao Dai
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引用次数: 0

Abstract

This study examines the impact of employee stock ownership plans (ESOPs) on stock-price informativeness in Chinese stock markets. Its findings indicate that firms implementing ESOPs experienced an average 11.89 percent increase in stock-price informativeness. The plans improved stock-price informativeness through increased external attention and supervision. An event study shows that ESOPs gave rise to an announcement effect, driven by anticipated performance improvements and the novelty associated with ESOPs. A mechanism analysis demonstrates that the implementation of ESOPs attracted market attention, and the increased market supervision resulting from this mitigated the moral hazards of management associated with ESOPs. Plans with more positive signals exerted a greater influence. Notably, ESOPs that prioritized management incentives gained more recognition in the market. As the incentive effects of ESOPs were weaker than those of equity incentive plans and the ESOPs lost novelty over time, the annual announcement effect diminished gradually. These findings underscore the necessity of strengthening ESOP incentives for continued optimization of price efficiency.

员工持股计划与股价信息性
本研究探讨了员工持股计划(ESOP)对中国股票市场股价信息性的影响。研究结果表明,实施员工持股计划的公司股价信息度平均提高了 11.89%。这些计划通过增加外部关注和监督提高了股价信息透明度。一项事件研究表明,ESOP 引发了公告效应,其驱动因素是预期的业绩改善和 ESOP 的新颖性。一项机制分析表明,ESOP 的实施吸引了市场的关注,由此带来的市场监督的加强减轻了与 ESOP 相关的管理层道德风险。积极信号更多的计划发挥了更大的影响力。值得注意的是,将管理层激励放在首位的 ESOP 更受市场认可。由于 ESOP 的激励效果弱于股权激励计划,且随着时间的推移 ESOP 逐渐失去新意,年度公告效应逐渐减弱。这些发现强调了加强 ESOP 激励机制以持续优化价格效率的必要性。
本文章由计算机程序翻译,如有差异,请以英文原文为准。
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来源期刊
CiteScore
4.70
自引率
12.90%
发文量
391
期刊介绍: The bi-monthly China & World Economy was launched in 1993 by the Institute of World Economics and Politics, Chinese Academy of Social Sciences (CASS). It is the only English-language journal in China devoted to the topic of the Chinese economy. The journal aims to provide foreign readers with an objective, impartial, analytical and up-to-date account of the problems faced and progress made by China in its interaction with the world economy. Among its contributors are many distinguished Chinese economists from both academic and government circles. As such, it has become a unique window on China and is essential reading for all those concerned with China"s development.
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