Research On The Problem Of Accounting In MBO

It has been more than 20 years since the research of MBO by the British economist Mike Wright who defined this phenomenon normatively on 1980.Practice has proved that MBO was useful to the insider incentive, agent's cost reducing, improving the state of enterprise's management, so MBO is widely used in American-European countries. The naissance of MBO is considered as an "effective governance mode ". After MBO, the managers become holding shareholder through credit tools, and ownership and management are combined into a single unit, which dispelled the foundation of the agency cost. With the development of economic globalization, more attention was paid on MBO recently; the property right reform of "Stone Group" was looked as the prologue of MBO in our country. Now the strategically readjustments of state-owned economy is promoting orderly, and the state-run capital dropped out from the general competitive field more rapidly, all these have undoubtedly provide a good environment for MBO. However, because the difference of market-based degree, the reasons of system, history and so on, it shows some new characters and a series of obstacles during the course of MBO, So some questions have appeared to in the course of implementing. Therefore the Ministry of Finance suspended the examination of MBO to the listed company and private company in March of 2003. With the relevant laws and regulations were gradually issued from SASAC, MBO is "unfreezed" gradually. April 14 2005, SASAC and Ministry of Finance issued" The Temporary Regulation about Enterprises' State-run Property Rights Transfer to Managements ", stipulate clearly the state-own property rights can be transferred to managers, but state-own property rights in the huge state-owned and state holding enterprises wouldn't be transferred. This paper deeply analyzes MBO under this background, and I hope to develop some valuable suggestions through the analyzing. I have discussed the accounting problems and substandard place, and tried to find the reason of these questions. Through the typical cases, the realistic significance was gotten, and answered the question of whether MBO fit our country's conditions. Finally I try to put forward pointed suggestions, and I hope MBO can step into the right path gradually, play a positive role with the constant perfection of the system environment.