Effect Studies Of Management Buyout Of Listed Companies In China

As a tool that combines enterprises' control renewedly and a route that realizes the changes of handlers' function, Management Buy-Out came into vogue in the west in the eighties of the twentieth century. MBO reflect deeply transformation and huge change of enterprises' structure and person-in-law in western nations in the past twenty years, and it have become a global current. MBO came forth in China till the end of 20th century. Along with the variety of policy environment, MBO had applied from primate enterprises to public enterprises.The background and root to cause MBO in China are the reformation of public enterprises' property right, which arouse from strategic recombination and contraction of public economy. Our enterprises carrying out MBO have positive significance in theory. In fact, when MBO had been replanted to our capital market, it was fed up with disputations on account of its' opacity in practice. In order to check the feasibility of MBO in China, we should take it's effect into consideration.The thesis begins with the theory of MBO, and analyses MBO between China and foreign countries. Then the thesis brings forward research hypothesis, and makes demonstration analysis by financial data, which comes from stock companies' financial report forms. As a result, the thesis educes some conclusions as follow: firstly, contrary to what the theories say, MBO leads to bad effect on the management achievement of the stock companies in China. But their supervisors have optimized most enterprises' capital structure. Secondly, MBO weaked the restriction mechanism of supervisors. Nearly all supervisors gained stocks at the price below net assets, the risks to sell stocks for supervisors are less than that for stockholders who are possessed of currency stocks. After MBO, most enterprises have high melon cutting than before, and supervisors become maximum beneficiary.