Reseach On Financing Of State-owned Enterprise Managent-buyouts In China

Management Buyouts (MBO) is a kind of purchasing enterprise that the target company's management uses the raised funds to buy shares or assets of the enterprise, access to corporate ownership and control, and asset structure through the reorganization of enterprises to acquire expected return. Management Buyouts was arised from U.S. listed companies in the privatization process, privatization and leveraged buyout by the resulting combination of a special acquisition mode in the 70s 20th century. After 40 years of continuous development, Management buyouts have entered standardized in the developed countries. As an important way of financial innovation and system innovation, Management Buyouts brings enterprise management mechanism reform and promotes economic development by optimizing the company's governance structure, preventing inefficient management caused by agency costs.As a way of state-owned economic restructuring and state-owned enterprises reforming, Management Buyouts has been widely applied to achieve the enterprise's property rights and the competitiveness of state-owned economy get out of the field in our country. Management Buyouts has a key role that can adjust state-owned economic structure, optimize allocation of state assets, reduce agency costs, speed up restructuring of the small and medium-sized state-owned enterprises, mobilize the enthusiasm of workers, improve the management level and promote the growth of an entrepreneurial class in China. However, the immaturity of China's capital market and the lack of financial instruments, coupled with regulatory restrictions on the financing channels that all restricts the development of management buyouts in our country. For the management of individuals with limited funds, fund raising is an important part of management buyouts, standard forms of financing, legal funding sources to a large extent determine the successful implementation of management buyouts and the reture after the acquisition of enterprises. Therefore, Study feasible, legitimate forms of financing Management Buyouts under the conditions in our country has important practical significance.This paper is divided into six parts. The first chapter is a introduction; the second chapter analyzed the theoretical basis of management buyouts, described the agency cost theory and property rights theory; the third chapter pointed out the behavior of stakeholders and the problems of Management Buyouts in China; the fourth chapter analyzed the situation of financing , the repayment and the effects of financing factor in the state-owned enterprises;the fifth chapter proposed the solutions to the financing of management was the introduction venture capital investment. This part first pointed out the entrepreneurial theory for venture capital, then analyzed the feasibility to introduce venture capital in the state-owned enterprises from the current development of China venture capital investment and the risk characteristics, the final analysed the approach of venture capital into and out of the enterprise. The sixth chapter is the case part, by analyzing the background and process of Sina management buyouts, come to the reasons for the success in Sina, then proposed the enterprise conditions of introduce venture capital and the proposal to Specificate Management buyouts.