Management Bay-Out

While focusing on the history and development of"Management Buy-Outs"(hereinafter referred to as MBO) in China and foreign countries, this dissertation analyzes concisely the importance of MBO to Chinese enterprises'developments。While pointing out related company governance and accounting issues, the author intends to find out corresponding solutions and measures, and propose China authorities promulgate some statutes to regulate MBO as early as possible.This dissertation is composed of seven chapters as below:Chapter one is about outline of MBO. The author clarifies relevant definitions relating to MBO, introduces the source of MBO and finally studies reason for MBO's prevailing all around the world and its major categories Chapter two discusses the theoretical and practical problems of MBO. The author introduces the background, function, history and reality of MBO in western countries. MBO plays an essential role in reducing agency cost, enhancing inspiration of manager, and finally improve enterprise performance. The development of MBO in China has already demonstrated its powerful vitality. Chapter three analyzes the influence of MBO on company governance in China. Although the goal of company governance is to maximize the stockholders'benefits, most of pubic listed companies in China deviate this target due to special stockholder right structure. This chapter firstly demonstrates some problems in respect of company governance in China then analyzes and appraises the effects of MBO in this regards.Chapter four explores main accounting and financing issues in MBO. In view of accounting academic community and accountants, such issues as influences of MBO on company performance, company governance and human resources capitalized, financing arrangement and cash flow structure are analyzed and researched. Chapter five discusses and analyzes some cases concerning MBO. On the basisof MBO case analysis, this chapter intends to find efficient operating models, to reveal main problems of MBO nowadays and practical meaning to corporation reform in China.Chapter six proposes several policy suggestions as follows: firstly, regulate purchase price of MBO from the angle of preventing state-owned assets from losing; secondly, further MBO legal system construction; thirdly, expand MBO financing channel and perfect financing environment; finally, strengthen inner and outer supervision mechanism.Chapter seven considers the future development of MBO in China. On one hand, the reduction and get-out of state-owned stocks, development tendency of China enterprises, preliminary formation of professional manager class, and continuous development of private enterprises provide presumption and condition for MBO in China; on the other hand, MBO may offer good chances to perfect company governance structure in China, to improve company competitiveness and enhance state-owned enterprises reform.In conclusion: MBO is an important and complicated art, and its properly implementation requires the joint efforts of every market participant. Currently, there are various kinds of MBO in practice, which indicates that market has strong desires for MBO in China. Demand decides feasibility. The related government department should consummate the regulation of MBO purchase body qualification, of legal channel of financing, and of formation mechanism in respect of purchase price as well, and should strengthen relevant information exposure and supervision methods. Thus we can form effective market system and efficient MBO operating mechanism, ensure healthy development of state-owned enterprises reform, and achieve the goal of MBO, otherwise MBO is just operated as a tool of some people's plunder on social fortune.