Theory And Empirical Study On Financial Structure Of Management Buy-Outs

In recent years, Management Buy-Outs has been in fashion in many state-run small or medium enterprises and few listed companies in our country. One of the motives of MBO in enterprises is that it can reduce company's agency cost and set up high-efficient encouragement mechanism, which can perfect company's administration structure. Financial structure has been the most important thing all the time in the process of Management Buy-Outs. For this reason, this paper sets up a mode of financial structure contributing to long term development of enterprise after MBO by theory and empirical study.On the basis of domestic and international financial structure research results, this paper studies from two respects of financial structure respectively, capital structure and ownership structure. According to the financial conditions of domestic and international Management Buy-Outs, this paper constructs financial structure of Management Buy-Outs in our country.Chapter 3 carries on correlation analysis and curvilinear regression analysis and works out 8 regression models between capital structure and corporate performance choosing 2003 sectional data of 192 listed company suitable for MBO. It draws the conclusion that company should reduce current liability proportion and increase long- term debt proportion moderately at the same time.Chapter 4 analyzes the relation between ownership structure and corporate performance. It collects 1082 data from all listed companies in 2002 and sets up a model of corporate comprehensive performance evaluation. It gets the ownership structure of major shareholders restricting each other, which is the best for the improvement of corporate performance by curvilinear regression between ownership structure and corporate performance.Chapter 5 thinks the financial structure suiting to MBO in future in our country from three aspects, bank debt, MBO fund and owner capital as follows: The proportion of the bank debtranges 20% to 45%. It is feasible that MBO fund will be up to between 5% and 15%. It is estimated that the owner capital can reach 5%~ 15%.