Empirical Research On Wealth Effects Of Listed Companies' Management Buyouts In China

Management Buy-outs is a kind of purchasing activity ,carried out by listed companies in China, which means management, internal staff or corporative entities acting as purchasing principle bodies to buy some proportion of listed companies'shares with their own money or loan, in order to control the listed companies relatively, and gain expected revenue at the same time. MBO expected as an effective channel for the exit of state-owned capital, not only satisfy the needs of economic reform from macro-economic aspect, but also meet the realistic demands of economic development. However, since there are many differences between foreign countries'MBO and that of our China, in motivation, object, economic, political foundations and procedures, during MBO being carried out, which may all cause the research result can't be applied to the practice in China.In order to make it clear that whether MBO carried out by Chinese listed companies bring significant wealth effects to stakeholders or not , find out the problems existing in the process of MBO carried out by Chinese listed companies, and advance some advisable suggestions and strategies for solving the problems, this paper mainly contains four parts: the first Part, introduces the definition ,origin, development and the study situation at present of MBO, between foreign countries and our China ;the second part, analyzes deeply among all kinds of differences in MBO between foreign countries and our China, furthermore, proposes three assumptions on whether MBO carried out by listed companies bring significant wealth effects or not, and clarify the study clue, sample selection ,data origin, and the selection of varieties of proxy variables; the third part, core of the paper, does a full-scale empirical research on whether the MBO carried out by listed companies in China bring significant wealth effects or not; the last part ,analyzes and concludes the wealth effects of MBO carried out by Chinese listed companies ,furthermore, advances some suggestions on speeding up the healthy development of Chinese listed companies'MBO.