Research On MBO Problems Existed In SOE In China

As a form of Enterprise Property Right Transfer,MBO first originates from Occident. Such system has been applied in China more widely in recent years, because it takes great effect on effectively reducing the cost of Principle-agent, inspiring both manage level and employees, and promoting the state-owned assets to step out from general competitive fields. Among those famous listed companies, some have successfully finished MBO, and some else have also formulated MBO plans. However,problems emerged in MBO practice have also attracted broad attention of all circles.From the point of MBO connotation, this paper provides institutions and measures that should be completed when listed companies implement MBO in China. The whole paper is composed of seven chapters. The first chapter is mainly introduced conception and characteristics of MBO. Then the Second chapter analyzes the MBO's economics base: Berle-Means hypotheses,managerial revolution,agency cost,ownership cost,corporate governance,three-needs theory (need for achievement,need for power,need for affiliation),property rights encourage, and then points out that the MBO system reduces monitoring cost and collectivity decision-making cost for manage level utmost by means of combined the role manager with owner, which also inspires manage level to make great efforts on management. After that, the Third Chapter shows the characteristics of Occident, Russia and East-European countries, compares their differences, and then brings out the strategy that we can use for reference from MBO practices in these countries. And in the forth chapter, it takes the performance of MBO as an example, which have been practiced both in medium or small companies in Wuxi and in listed enterprises in China, and then demonstrates the feasibility of MBO in our country. And then the fifth chapter analyses problems existed in MBO in China, and reasons for these problems, as well as potential economic and social risks. Based on the above analysis, the six chapter brings forwards the selection of strategies for MBO in...