Management Buy-outs And The Reform Of The State Enterprise

This paper is connected with the application of the theory of Management Buy-outs to the reform of the state enterprise .The theory of Management Buy-outs , in short word , is MBO . MBO is able to improve the administrative structure of the companies . At the same time , there are some problems of the administration in the state enterprises , because the owners of the national property are indistinct . So,the administrative structure ought to be made better ,if the enterprises are bought out by their managers .There lie two problems which limit the application of MBO in the reform of the state enterprises . One is that the knowledge of MBO is lack ; the other is that the accumulation of the capital is difficult . The author spends a lot of time dealing with the two barriers .On the basis of the premise , the paper puts forward the point of view . It is fine for the grown-up of Chinese capital market and the improvement of the administrative structure , if the state stock is subtracted by the method of MBO .Finally , the author takes a great deal of time to prove the paper's viewpoint .