A Study On The Effect Of Management Buyouts And Performance In Listed Companies In China

In the course of stock market development in China, a number of issues emerged and been widely discussed in the theory and practice, some solutions to these problems naturally become the focus of attention. Since the MBO in SITONG group in 1999, MBO as a solution to our irrational equity structure was used by an increasing number of companies. Discussion of the effectiveness of its results and causes became hot spots of concerns. Twice " hault " policy was which made by government promoted related study.The study aims to examine whether the MBO of Chinese listed companies has effect on market, and to identify the factors that affect these effect, further, review whether MBO brought real improvement in the companies' performance or not. Through the work above, I find out shortcomings in the regulation of securities market and in the corporate governance mechanisms, and then bring forward the solution to them.Western economists have long discussed the issue of agents, many studies addressed that MBO can settle the inconsistent of interests between shareholders and management, and the relatively integration of right to control and management also weakened "free-rider" problem, for these reasons, MBO can improve corporate governance structure, and have a positive impact on stock prices and long-term performance of companies. However, the prerequisite to implementation of MBO abroad are their high degree of marketing and the full circulation of shares. In China, imperfect circulation of equity structure widespread, the MBO was exercised in different soil from the outset, and in practice, because the pricing methods, sources of financing, the identity of purchase are hidden, so our MBO possessed different characteristics from the West. So the impact on the performance of the company is worthy of our concern and controversy. My study of the effects of MBO on the listed company and influence factors, and the review to performance of the company, has important significance to the development of relevant regulations by SFC sector, to the...