Does employee stock ownership program reduce a company’s stock volatility during the Covid-19 lockdown?

Tran, Phan Huy Hieu

doi:10.1016/j.jbef.2021.100558

Cited by 4 publications

(4 citation statements)

References 22 publications

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“…The result of the study is consistent with Kaya and Lumpkin‐Sowers (2017). Tran (2021) shows that banks with ESOP have lower stock price volatility than banks without ESOP because the market is confident about the company's viability after the crisis. Kim and Patel (2017) report that ESOP is essential in improving financial performance.…”

Section: Empirical Results and Discussionmentioning

confidence: 99%

“…In this study, we follow Meng et al (2011) and Tran (2021) to measure ESOP as a dummy variable and take the value of one if the bank has an ESOP and zero otherwise.…”

Section: Esop and Ownership Structure Proxiesmentioning

confidence: 99%

“…ESOPs allow long‐term employees to buy shares at a favorable price with certain conditions to share profits and reduce the firm's risk (Tran, 2021). In Vietnam, the number of shares issued in 12 months must not exceed 5% of the current outstanding shares 1…”

Section: Literature Reviewmentioning

confidence: 99%

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How do employee stock ownership plans programs and ownership structure affect bank performance? Evidence from Vietnam

Duong

Nguyen

et al. 2023

Manage Decis Econ

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This study analyzes how employee stock ownership plans (ESOPs) and ownership structure affect bank performance. The study employs the generalized method of moments to examine data from 39 Vietnamese commercial banks from 2009 to 2020. The findings indicate that banks with ESOP improve ROA by 57% more than banks without ESOP. However, a percentage increase in state and domestic ownership reduces the ROA by 0.7% and 0.4%, respectively. The study has important implications for governments and regulators. While the findings do not support the cherry‐picking and free‐rider theories, they align with agency theory and prior literature.

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Section: Empirical Results and Discussionmentioning

confidence: 99%

“…In this study, we follow Meng et al (2011) and Tran (2021) to measure ESOP as a dummy variable and take the value of one if the bank has an ESOP and zero otherwise.…”

Section: Esop and Ownership Structure Proxiesmentioning

confidence: 99%

See 1 more Smart Citation

How do employee stock ownership plans programs and ownership structure affect bank performance? Evidence from Vietnam

Duong

Nguyen

et al. 2023

Manage Decis Econ

View full text Add to dashboard Cite

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“…Since the issuance of the Guidance, scholars in China have begun to test the announcement effects of ESOP in the new era, and consistently find that the announcement of ESOP can bring a positive short-term wealth effect to shareholders, and the wealth effect varies with the different designs of ESOP [33][34][35][36][37][38]. In addition, several studies provide other market consequences of ESOP, such as increasing stock liquidity [39] and reducing stock volatility, equity capital cost, and stock crash risk [40][41][42].…”

Section: The Consequences Of Esop Implementationmentioning

confidence: 99%

The Contract Design of Employee Stock Ownership Plan and Enterprise Innovation Investment: Evidence from China

Cheng

Chen

2023

Sustainability

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Enterprise innovation is a key driver of national economic growth. How to stimulate employees’ innovation vitality to improve the company’s innovation input and output has always been a hot topic. Employee Stock Ownership Plan (ESOP) is one of the effective means to stimulate employees’ innovation vitality by linking employee wealth with firm value. The purpose of this paper is to examine the effect of ESOP implementation and contract design on enterprise innovation investment in the context of the recent booming development of ESOP in China. First, we use a treatment effect model to examine the impact of ESOP implementation on innovation investment, taking firms that implement ESOPs as the treatment group and firms that do not implement ESOPs as the control group. Second, we use multivariate regression models to test the impact of ESOP contract design (including fund source, stock source, lockup period, duration, shareholding scale, executive subscription ratio, participation degree, and management mode) on innovation investment using the treatment group. The results indicate that the implementation of ESOP is helpful in increasing enterprise innovation investment, and the impact of ESOP on innovation investment varies significantly with the design of incentive contracts.

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COVID-19 Government restriction policy, COVID-19 vaccination and stock markets: Evidence from a global perspective

Xiao

2023

Finance Research Letters

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Does employee stock ownership program reduce a company’s stock volatility during the Covid-19 lockdown?

Cited by 4 publications

References 22 publications

How do employee stock ownership plans programs and ownership structure affect bank performance? Evidence from Vietnam

How do employee stock ownership plans programs and ownership structure affect bank performance? Evidence from Vietnam

The Contract Design of Employee Stock Ownership Plan and Enterprise Innovation Investment: Evidence from China

COVID-19 Government restriction policy, COVID-19 vaccination and stock markets: Evidence from a global perspective

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