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Core-Staff-Based ESOPs : a new concept of employee share ownership in China

Abstract : Our underlying thesis focuses on the development of employee share ownership plans in China (called ESOPs as below). We attempt to fill knowledge gaps, search for a truth behind stereotypes, revise performance analyses, and study the organizational ecology of ESOP development in the specific contexts of China. For this, we construct our theoretical framework with the theories of organizations and decision-making, and apply specific big data skills for empirical studies. Our findings reveal that isomorphic structuration has not occurred between Chinese firms and western firms due to China’s specific environments. However, two ESOP mechanisms having emerged in different periods can be merged into one new model called Core-staff-based ESOPs, because of the similarity in structures, objectives and procedures. Distinct from broad-based or executive-based ESOPs, this particular ESOP mechanism requires participants’ qualification, involving the participation of senior executives, directors at the middle level and any other employees that make particular contributions to firms. In a society where traditional values conflict with new ESOPs’ inherent properties, we explore ESOP firms’ motives with institutions, firm characteristics, and performance analyses. Our findings reject coercive impacts and risk-taking desires in worrisome situations but support the effects of firm specificities and particular institutional policies, which would have encouraged a specific group of Chinese firms to challenge. We also contextualize the agency cost model with the resource-based analyses in prospects. Based on the regressions conducted with 119994 firm-quarter panel data during 2006-2018, our results confirm the positive effects of Core-staff-based ESOPs in improving firms' performance, reducing business risks, and increasing firms' market values in the normal business situations. Finally, we capitalize employees’ contributions in the multi-capital potential and unveil the roles of “Core-staff-based ESOPs” in innovation, which enable Hi-Tech firms to increase their survival chances and enhance the innovation ecosystem’s efficiency as a whole.
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Submitted on : Thursday, April 8, 2021 - 4:18:27 PM
Last modification on : Friday, February 11, 2022 - 12:27:14 PM


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  • HAL Id : tel-03193245, version 1


Huifen Pan. Core-Staff-Based ESOPs : a new concept of employee share ownership in China. Business administration. Université de Lorraine, 2021. English. ⟨NNT : 2021LORR0022⟩. ⟨tel-03193245⟩



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