A Study On Normative Operation Of Management Buyout Of China's Listed Companies

As one of the major means of Merger & Acquisition (hereafter"M&A") in the more mature western world, Management Buyout (hereafter"MBO") has demonstrated to be highly effective in lowering agency costs, improving corporate governance and motivating entrepreneurs. In recent years, with the deepening of state owned enterprise restructuring, the development of industry structural adjustment and the increased global competition brought about by economic globalization, MBO as a means of M&A has also made rapid progress in China.The surge of MBO in china not only provides intuition in the ownership restructuring of SOEs, the optimization of state asset allocation, and the strategic adjustment of state economy, but also is more and more valued as a new way to restructure enterprise assets and to reallocate resources. However, due to the complication and diversity of MBO, its application has met with many obstacles, such as the pricing of state owned shares and the resolution of capital bottlenecks, which are to resolved in practice.This article introduces the origin and history of MBO overseas and makes a deep analysis of its theoretic grounding. It also analyzes the major problems in MBO practices of Chinese listed companies and related legal obstacles and causes from an empirical perspective, and accordingly makes suggestions at both legal and political levels.