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Research on Employee Sentiment and Employee Stock Ownership Plan

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Proceedings of the Sixteenth International Conference on Management Science and Engineering Management – Volume 2 (ICMSEM 2022)

Part of the book series: Lecture Notes on Data Engineering and Communications Technologies ((LNDECT,volume 145))

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Abstract

Employee stock ownership plans have undergone many changes in China. This paper examines how employee optimism affects their participation in ESOP. Using the annualized stock return to characterize the employee sentiment, our results based on the Chinese listed firms that have carried out ESOP throughout 2014-2020 show that employee optimism promotes participation in ESOP. Moreover, our cross-sectional analyses show that this effect is more significant in firms whose employees have a lower level of education or salary. Further, we find that ESOP with sufficient employee participation has a positive implication, leading to more corporate innovation and the increased quality of information disclosure. This paper expands the application range of employee sentiment from option plans to ESOP. Secondly, it provides a further understanding of ESOP from the perspective of employees and supplements this part of the literature. Besides, it has a certain guiding significance for improving the design of the employee stock ownership plan system and promoting enterprises.

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Author information

Authors and Affiliations

  1. School of Business, Sichuan University, Chengdu, Sichuan, 610064, People’s Republic of China

    Qianwei Ying, Danni Song & Dan Huang

  2. Wah Campus, Comsats University Islamabad, Islamabad, Islamic Republic of Pakistan

    Qurat ul Ain

Authors
  1. Qianwei Ying
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  2. Danni Song
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  3. Dan Huang
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  4. Qurat ul Ain
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Corresponding author

Correspondence to Dan Huang .

Editor information

Editors and Affiliations

  1. Business School, Sichuan University, Chengdu, Sichuan, China

    Jiu** Xu

  2. Department of Industrial Engineering, Gazi University, Faculty of Engineering, Ankara, Turkey

    Fulya Altiparmak

  3. School of Mathematical Sciences, University of Khartoum, Khartoum, Sudan

    Mohamed Hag Ali Hassan

  4. University of Castilla-La Mancha (UCLM), Ciudad Real, Spain

    Fausto Pedro García Márquez

  5. Institute of Control Systems, Azerbaijan National Academy of Sciences, Baku, Azerbaijan

    Asaf Hajiyev

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Ying, Q., Song, D., Huang, D., ul Ain, Q. (2022). Research on Employee Sentiment and Employee Stock Ownership Plan. In: Xu, J., Altiparmak, F., Hassan, M.H.A., García Márquez, F.P., Hajiyev, A. (eds) Proceedings of the Sixteenth International Conference on Management Science and Engineering Management – Volume 2. ICMSEM 2022. Lecture Notes on Data Engineering and Communications Technologies, vol 145. Springer, Cham. https://doi.org/10.1007/978-3-031-10385-8_45

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