Research On Problems Of MBO Of China's Listed Companies

Due to historical factors, Chinese state-owned enterprises naturally have serious property-right problems by the appearance of illogical property-right structure, high agency cost, insider's control, deficiency of effective incentive mechanism in the enterprises. The development of Chinese economy has been blocked by the low efficiency of the state-owned enterprises for a long time. Some reforms were made to the state-owned enterprises more or less in the past, but they did not involve with the property-right reform, so the low efficiency problem has been not solved radically.As the state-owned enterprises' reforms go on, people more and more clearly realize that the only way for the state-owned enterprises lies in the property-right reform and the optimization of governance structure: privatizing, returning rights to people, transferring the rights of electing and supervising managers to the real capital owners, making the real capital owners master the residual claim rights and residual rights of control. This reform was made in the background of the decision of "conducting strategical reorganization of the state-owned economy to realize the congregation of state-owned capital from normal competitive sectors to strategical sectors", which was made in "the fourth plenary session of the 15th central committee". Under this background, privatization of the state-owned enterprises not only meets the time, but also has good policy environment. We can believe that MBO will have a wide perspective during exit of the state-owned capital and the optimization of the governance structure of the state-owned enterprises.After having deep researches on the economic theories of MBO, this paper have an all-oriented analysis about frame of the behaviors of MBO by listed companies in the country: from the status in quo to reason, to characteristic, to model selection and to performance change, etc. then, through the first MBO case "Yue Mei Di A" by the listed company, it fully shows the whole process of the Listed company's buyout. At last, the paper put forth some useful policy suggestions of normalized operation for the MBO on the basis of full analysis about problems on MBO by Listed companies.