| Management buy-outs (MBO) prevailed in developed countries in the 1970s and 1980s, for it can lower the cost of agent, decrease the burden of company, shake off the constraint in system of listed company and focus on developing the nuclear business. In our country, however, MBO has sprung up in recent years, especially in the reform of state enterprise and the back out of state property. Why? There are mainly four reasons: First, MBO may contribute to distinguishing the property right, strengthening the supervision to the enterprise and resolving the deletion of ownership. Second, it is able to lower the cost of agent and establish a long-term and effective motivation mechanics. Third, it may quickly realize the value of state property. Fourth, the empirical analyses show that it can upgrade the operation performance. In the process of operation, however, many restrictions, such as the constraint of correlative laws and regulations, the prematurity of capital market and lack of support of national policy, have been posed on the managements, so they can only rely on the limited financing ways. But, for the sake of completing MBO, many managements take the ways as many as possible, even the ways violating the laws and regulations, thus these will certainly bring about potential danger to the development of the enterprise and society. Therefore, I just research the domestic MBO from the perspective of financing problems.The article includes five parts: The first part introduces the background and reasons of the advent of management buy-outs, then simply talk about the presentresearching fruits. The second part relates the related theory, such as the theory of human capital, the theory of principal-agent and the relation between MBO and the corporate governance and these are the main theoretical basis of this article. The third part talks about some basic concept, such as, the meaning, motivation, advantage, characteristic and mode of MBO The fourth part analyzes the situation of foreign MBO, which mainly include the financing characteristic, the financing channels and the back out ways of fund. The last part analyze the present financing situation of domestic MBO, then offer some tactics to the domestic MBO at the basis of analyzing abroad domestic situation. |
