ESOP and Corporate Sustainable Growth

The Employee Stock Ownership Plan (ESOP) is a long-term corporate welfare policy that allows employees to share the profits and growth benefits of the enterprise by owning the ordinary share of the enterprise. It has always been a research hotspot at home and abroad. Sustainable growth refers to the healthy and sustained growth of enterprises. ESOP has been re-implemented in China since 2014. Using dual fixed effects model, this paper empirically analyzes 6940 observations of Chinese listed companies from 2014 to 2018. We study whether ESOP can improve the sustainable growth rate of enterprises by allowing employees to hold equity, linking their personal interests to the interests of enterprises, and thus playing an incentive and supervisory role to effectively reduce enterprise agency costs. In the research process, we find that the data can help us objectively analyze the economic management problems of enterprises. However, when using the data for analysis, the correlation coefficient and significance should be analyzed together.