When Marx borrows from Smith: The ESOP in China

Warren Chi Kwan Chiu*, Xu Huang, Han Long Lu

*Corresponding author for this work

Research output: Contribution to journalJournal articlepeer-review

1 Citation (Scopus)

Abstract

The employee stock ownership plan (ESOP), a capitalist practice, was borrowed for the purpose of rescuing and even consolidating socialist state-owned enterprises during the drive in China to reform ownership. More precisely, ESOP was implemented to bail out failing firms, raise funds, increase work motivation, reduce agency costs, and promote industrial democracy. The findings of a case study of three Chinese state-owned enterprises suggest that some short-term goals were basically achieved, but the accomplishment of the other long-term goals was somewhat problematic. Based on our initial findings, recommendations are put forward for future research and practice.

Original languageEnglish
Pages (from-to)761-772
Number of pages12
JournalJournal of Contemporary China
Volume14
Issue number45
DOIs
Publication statusPublished - Nov 2005

Scopus Subject Areas

  • Geography, Planning and Development
  • Development
  • Political Science and International Relations

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