MBO: Intensive Analysis Of The Theory And Applications

Giving a theoretical explanation of Management Buy-outs (MBO) in terras of modern enterprise theory, entrepreneurial theory and profit co-sharing theory, the author points out that in essence, MBO is not contradictory with modern enterprise system. Through studying the practice of MBO in Western and Eastern countries, the author points out that MBO is important in the process of establishing modern enterprise system in China. What is innovative in the thesis is that, based on stakeholder theory, the author gives a comprehensive analysis of MBO in perspectives of government, employee, buyer, seller, creditor and agent institution (while previous studies mainly focus on the buyer and the seller). This may have some positive meaning for smoothly, fairly and reasonable implementing MBO. The thesis analyses the impact of MBO on corporate financial policy, pointing out that after MBO, the company may be inclined to distribute profit by cash and invest very cautiously. After analyzing the legal risk, financial risk, moral risk and corporate governance risk of executing MBO, the author provides several approaches to avoid such risks.The author gives his answers to many hot issues about MBO. The author believes that MBO itself will not lead to the loss of state-owned assetswhile only abnormal and opaque MBO will lead to the loss of state-ownedassets. MBO is also not panacea that can solve all the problems.At the end of the thesis, the author gives six suggestions on implementing MBO in China, hoping that they may be helpful to implement MBO in our country...