A Research About The Elements That Affect The Prices Of Management Buy Outs

The purpose of the paper is to research the evidence of scientific MBO pricing by the study of MBO pricing and its affecting factors. In this way, the author look for a theoretical support about pricing for lawful and persistent implement of MBO.Proceeded with the basic instances of the MBO, the paper analyzes the actuality of the MBO, the factual meanings to the innovation of our state enterprises, and the formed reason of the MBO transaction price. On this base, the author put forward the issue to be worked over-the research on the factors affecting the MBO transaction price. This paper confirms the relevant factors of the MBO transaction price through three fields: net assets per share, the stock structure, the earning per share (EPS) and the performance in market. And the author also finds out the affecting factors from the relevant factors of the MBO transaction price by analyzing the data of 13 corporations, which implement the MBO. The author mainly adopts 'model-data evidence analysis' method. Firstly, it is studied the correlation of the factors with the MBO price by partial analysis. Then, this study is furthered by enter and stepwise regression analysis to indicate how these factors affect the MBO price. Finally, the nonlinear model of the factors and the MBO transaction price is established by using the Group Method of Data Handling (GMDH). Through compared the outcomes of multi-quantity analyzing methods, the author explains the relation between MBO transaction price and affecting factors.It is shown in this paper that net assets per share are still a key factor that affects the MBO price. So far, that the transaction price isn't low than the net assets per share reflects the interest of both the buyers and the sellers, while guaranteeing that the state owned capital will not be lost. The public listed corporation's two-dimension structure of equity in china greatly affects the MBO price. It is shown that the proportion of the legal person shares in the total shares has significant relation with the transaction price. The higher the rate of the proportion of the legal person shares in the total shares, the lower the transaction price, and correspondingly the managing boards can buy out by the less costs. Some financial factors assumed to affect the MBO price haven't obvious effects on the transaction. So far, the MBO of the public listed corporation in China are basically short-term manipulating behavior of the managing board aimed to control the objective company. The managing boards have not strategically analyzed the MBO pricing.