Employee Stock Ownership Plans and Stock‐price Informativeness
Yuehua Zuo,
Xin Huang,
Xiaojun Liu
et al.
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.… Show more
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