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A Study On Management Buy-outs And Financing In State Owned Enterprises

Posted on:2005-06-08Degree:MasterType:Thesis
Country:ChinaCandidate:H M WangFull Text:PDF
GTID:2156360125464865Subject:Technical Economics and Management
Abstract/Summary:PDF Full Text Request
Management buy-outs is a kind of activity, in this action the management of the corporation that would be acquired used the financing funds or purchase their own share, thus change the structure of the ownership, the structure of the domination right and capital fabric, furthermore re-fabricate the corporation and obtain the expected earnings. There are some impacts that the management buy-outs carried out by State Owned Enterprises (SOEs) may bring out: firstly, it may clarify the property rights of SOEs, and will be beneficial for solving the morality risk which is caused by the parting of ownership and management right; secondly, it may perfect the inspiration mechanism for the administrator in the SOEs; thirdly, it may be beneficial for the forming of entrepreneur market.This paper analyzed the theory base and economics explanation of management buy-outs, and summed up the operating forms and present conditions of management buy-outs, drew these conclusions: firstly, since the capital market is poorly-developed in our country and because of the objective economy circumstance's influence, the management buy-outs conducted by SOEs have got the obvious feature of relatively share manipulating, thus caused the finance lever utility exterior. Secondly, different from the management buy-outs in other countries, management buy-outs in our country are lacking in fixed finance forms.On the basis of these conclusion, this paper analyzed the features of financing in the management buy-outs by SOEs, and mainly discussed two problems:Firstly, the author analyzed the investor's evaluation towards management buy-outs program by using the signal game theory model; the conclusion is that the investor can judge the managerial ability of the target corporation's administration, furthermore evaluate the corporation's future value.In addition, the author simulated the fund's increasing condition of the target corporation after the management buy-outs, and then discussed the problem of debt reimbursement after financing. The conclusion is that the administration can simulate the fund's increasing curve by analyzing the financial report of the corporation, thereby rationally arrange the debt reimbursement after management buy-outs finance, and avoid the running straits caused by lack of funds.Through this paper's study, the author hoped that it would be helpful to the management buy-outs carried out by Chinese SOEs, especially to the financing action.
Keywords/Search Tags:management buy-outs, financing, signaling game model, debt reimbursement
PDF Full Text Request
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