Chinese Listed Companies Management Buyout (mbo)

The dissertation focus on Management buy-outs (MBO) in China stock market. With the comprehensive utilization of event study, empirical study, comparative study, case study, history study, logical and induce study. It lays out the basic analyse theoretical framework for China MBO's applicability, compares the MBO's differences between China's MBO and the foreign MBO, Analyses MBO's basic situation, behavior character performance in finance and fortune, analyses MBO's future in China.The reformation in China state-owned enterprise has been the hotspot and difficulty. By continuous effort, we put forward the reformation touching the property right and setting up the system of property right. On this background, MBO was imported into China. In west countries, MBO is a behavior of merger and acquisition, but in China, the MBO has been given more function, such as: to define the property right, to solve the lack of the owner and to stimulate the management. In China, MBO concerns with the interest adjustments social justice, economical efficiency etc., and affect the social stabilization. In recent years, MBO has been becoming the social hotspot, there is a fury debate, the viewpoint is very opposed, that is infrequence. The situation also shows there are many questions waiting to be solved and be studied both in theory and practice.1. The paper gives a reflection to the MBO's general theory, admit these theories rationality to some extent, meanwhile the paper points out these theories' shortcomings, include the MBO's results: the enterprise has become the classical enterprise with the assets ownership right and management right combined. By these analyses, to see clearly the MBO's essence, value and disadvantage.2. The paper tries to lays out the basic analyse theoretical framework for China MBO's applicability.The study tries to confirm that the MBO cannot wave the modern stock company by researching the modern company system's logical and by comparing agency's cost and agency's income.The study firstly analyses the reform path of state-owned enterprises, finds out: there are two difference meaning about the separation between the owner right and the management right (two rights), the one's in China which do not touch the nature of state-owned property right, only to change the property into stocks, and the one's in modern stock company which has a clear property rights belong to person. We cannotmake a conclusion that "two rights separation" do not suit to our country, we should take on a reform by "two rights combined" since the state-owned enterprise reform faces many quesrion and difficulties by changing the state-owned property into shares, this "two rights separation" is not the same as that one. But it is this point that become the logical base to those who maintain that MBO should be the main stream model of the state-owned enterprise reform.The paper clarifies that MBO is applicable to middle and little enterprise by analyzing the system changing in China's state-owned middle and little enterprise from stock cooperation to ESOP (Executive Stock Ownership Plan) and to "second reform", and also by the social survey and the latest statistic.3. By China's public company's character and the function warp in China's stock market, The paper deems that the MBO in China is a interest adjustment, there are a benefit's game, and this is a important question that must be researched when you study MBO. We must respect the benefits among the relative people.The dissertation analyses the difficulties, danger, and the harm when carry the MBO into execution in China.4. The paper tries to make clear the MBO's applicable range and situations and tries to construct the MBO's analyse base for practice by expounding and analyzing the development logical in America and Unite Kingdom, finds out that MBO is only temporary investment or gamble behavior. MBO only suits to some company having speculation value or only when double sides between the buyer and the seller having different value judgement to company's value, in addition to those conditions such as proper law-, tax favorable and financing environment. By no means, MBO is suitable to any enterprise at large and on any occasion.The MBO in China is difference from the MBO in U.S and UK. To find the essence by comparing China's MBO with the foreign MBO, Why the MBO was not reproached in foreign countries, but was reproached in China, by analyzing, the reason lies in separated stock rights.After that, the paper analyses the shortcomings which result by separated stock rights. The dissertation points out that MBO leads to serious problem and do harm to the interests of public stockholder. In China, because of the separated stock rights, the MBO's essence is the inside person's trade.5. The paper tries to find out the full statistics, to give a empirical research to the China's public company MBO , including it's general situation -. behavior characters^ financing character and fortune performance. Meanwhile the paper gives a case study on...