The Study Of Chinese Listed Companies' Management Buy-outs (MBO)

As Management Buy-outs (MBO) has developed rapidly in recent years, more and more cases of MBO happened in China. Listed companies, the representative of corporations in China did something in the MBO wave too. From 1997 to the end of 2002, there were more than 10 listed companies did MBO. However, because of some reasons, there are also some problems in MBO. So doing some research in this field has practical sense. Considering the representative ness of research objects and the availableness of data, in this thesis, we choose 13 listed companies as the research objects. We want to find out the problems that lie in China's MBO practice and give some suggestions. This thesis is divided into 5 parts: preface, the basic concept of MBO, the development and present situation of MBO, the problems of MBO in Chinese listed companies, and the solutions for MBO. The last 3 parts are the key points.Preface mainly introduces the present situation of the development of MBO in China and the research purpose of this thesis.Part 1 introduces the basic concept of MBO. It includes 6 sections. In this part, to begin with, it inquires into the definition of MBO and explains the difference between the MBO and LBO. What follows is the introduction of the main characters of MBO, and the types, the sources, the functions and the history and development of MBO. The data form the foreign countries included is the latest data.Part 2 is composed of 3 sections: the first one is the brief review of the present situation of the development of MBO in China; in section 2, we analyses the main characters of 13 listed companies by calculating a lot of data. This is the key point of this thesis; Section 3 analyses the signification of MBO.Part 3, which put emphasis on the existing problems of MBO, includes 4 sections: the problems of fixing price, the problem of fund source, the problem of discovering information and the new problem of insider control. The thesis analyses the above problems by citing some cases in each section and finds out the reasons in the last part.In part 4, we put forwards a series of methods and solutions, including 5 sections: 1. Solving the problem of fixing price by introducing competitive mechanism; 2. Setting up the relevant laws; 3.Letting trust companies take part in MBO; 4.Developing the active investors and MBO fund; 5. The importance of intermediary institutions and middling and small investors in MBO.