Abstract: Based on the ESOPs announced since the CSRC released the guidance in June 2014 to June 2016,this paper uses the event research method to analyze the ESOP announcement market reaction. The study found that:(1)The market has a significant positive response to the ESOP announcement,but this positive response appeared one day before the announcement date,indicating that there may be a message leak; the market response to state-owned enterprise announcements is better than that of non-state enterprises; for the Growth Enterprises Market in the high-tech enterprise announcement response is better than non-high-tech enterprises.(2)There is leverage in the source of funds compared with the non-leveraged; stocks are derived from private placement compared to the secondary market,the higher the ESOP's shareholding ratio,the better the market response for ESOP announcements.