Mechanism Analysis And Portfolio Performance Empirical Study Of State-owned Enterprises' MBO

To deepen the reform of state-owned enterprises and establish modern enterprise system is the emphasis of Chinese economic reform at present time. Chinese state-owned-enterprises, especially those medium-sized and small enterprises, are still in a state of low-benefit. From this fact, we can deduce that there must be a motive of the system, which is, in my opinion, the ownership. Management Buy-out (MBO) is a new mode based on the traditional theory of merging. Because of the positive role to enterprise management, especially to management, such as distinct property right, strengthening encourage, etc, MBO which evolved from the western is approved by listed firms gradually. But reality is that various kinds of "curve MBO"are popular on a large scale in transitional period, what's the mechanism of China's MBO? What's the portfolio performance of MBO? Does it reach the expectation? How to solve the questions? This paper aims to discuss on the feasibility and questions of the state-owned enterprises'MBO, and provide the solutions. This paper has reviewed the traditional theory of MBO at first, through studying the practice of MBO in Western and Eastern countries, the author points out that MBO is important in the process of establishing modern enterprise system in China. The thesis below gives a thorough discourse on the mechanism of China's MBO. Analysing the questions we provide some advice for improving MBO performance. Among the empirical part, this paper adopt event study to analysis the characters in the MBO at first, the result is the same as the results before; at the same time, the management performance before and after MBO by factor analysis indicates that there is not obvious improvement in the management performance after MBO, such result fails to meet the expectation. After that, we provide some advice for improving MBO performance according our economic policy at present. At last, adopting case research to show the development of the state enterprises'MBO in China. What complements and extends previous studies in this dissertation is that, Firstly, the majority of studies on MBO have focused on the single problems, the author gives a comprehensive analysis of China's MBO's mechanism. It is a innovation of principle-agent theory . Secondly, Adopting the ways such as event study and factor analysis etc, compare the management performance before and after MBO. Thirdly, adopting the evaluation system of operational results to analyse the management performance of MBO.Related to the frontal result, we aim to grasp the China's MBO in the whole.