On Present Situation And Countermeasures Of Management Buy-out In China

Management Buy-out appeared in the USA in 1980's, then developed on an unprecedented speed and scale in the western countries. After entering 1990's, MBO was deep studied as a useful method to perfect corporate governance structure by many specialists and scholars. After more than 20 years' development, MBO has formed an open and standard system in the west, and played a important role in encouraging insiders, reducing agent cost, improving management of enterprises and so on.The development of MBO was tortuous in China.In the middle of 1990's MBO appeared under the background of the reform of state-owned enterprises, and came to be a hot topic in China. But considering the particularity of state-owned assets, the authorities were very prudent about MBO. Thus MBO went underground shortly. 2002 the 16th National Congress of Chinese Communist Party gave MBO an opportunity of rapid development, many enterprises attempted to carry out MBO, to which was widely paid close attention in China. However, because there were lots of defects or leaks in the market and operation sequence, there were some important problems in MBO in China, MBO was broken down in April, 2003. From the end of 2003 to the beginning of 2004, the attitude of the State Council to MBO became clear gradually, and MBO became a focus again. But at the end of 2004, the State-owned Assets Supervision and Management Committee declared that large state-owned enterprises would not be allowed to carry out MBO, and listed several limits about MBO of small and medium scale enterprises.In spite of these, the author deems that MBO should be a beneficial attempt to the reform of poverty right under present circumstances, and would be a trend in deepening poverty right reform in China in the future. In addition, the leader of the State-owned Assets Supervision and Management Committee stated clearly: MBO was to be standardized rather than be forbidden. So it is very necessary to study the pertinent questions of MBO in China deeply.The current situation and countermeasures of MBO in China were the main topicsin this thesis. Based on dissecting the cases of MBO, the problems of MBO in China were analyzed, and countermeasures were put forward.The thesis consists of 5 chapters. In Chapter 1, the background and purpose of the thesis were elaborated. In Chapter 2, the intension and the theoretical foundation of MBO were discussed. In Chapter 3, "Guangdong Media" and "TCL Group" two MBO cases were analyzed, and the differences between MBO in China and that in the western countries were explored. In Chapter 4, the present situation of MBO in China was examined. In Chapter 5, on the basis of above mentioned several countermeasures and advice were suggested.