Theory Seeking And Case Study Of MBO In China

After going through several difficult years, MBO which has ever won a burst of applause falls into the dilemma that MBO has been suspended when the order is coming that the permission for MBO of company is not given temporarily. However, MBO has played a positive role as an important measure to the reform of state-owned shares in clarifying the structure of assets ownership of state-owned enterprise, perfecting the administration structure of company and decreasing the agency cost. But meantime, MBO has its shortcomings in the sources of capital of buy-outs, permission for the price of buy-outs, validity for the subject of buy-outs, etc.; and the interests of small shareholders may be injured. So the operation of MBO urgently needs regulating and improving.With a view to listed companies that have implemented MBO, the paper opens out its dissertation and study, which is because a lot of state-owned capital is involved in these listed companies and it is convenient for collecting and analyzing data for there is the rule to throw daylight on the information and data of listed companies to the public. The paper sets about introducing general theory of MBO, expounding the meaning of MBO, analyzing its main traits, development and the reasons and significance of carrying out MBO. At the same time, it tries to find out the access to carrying out MBO after comparing the difference between operating MBO in western countries and that in China. Then it studies the cases of MBO of China's listed companies. It selects typical cases to explain the operation of MBO from establishment of the body of buy-outs, the sources of shares, the process of MBO and the sources of capital of MBO, etc., which are live models for listed companies. Meantime, it introduces the case of indirect MBO of listed company, which has validity to seek for the current development of MBO. It also compares the financial circumstances of these listed companies after MBO with before. It draws the conclusion that the financial circumstances of these listed companies have not become worse after MBO, and what is more, carrying out MBO has further influence on the capital market and positive significance to enterprise's behavior of management after it has implemented MBO. At last, the paper analyzes the problems that China's listed companies met when they carried out MBO and it brings forward corresponding countermeasures and advice.