The Study Of MBO In Chinese Public Corporations

There are infinitely stimulative effects of MBO in many fields, such as reducing the agency cost , inspiriting managers, so MBO develops very quickly in western economic countries with mature markets. On the support of mainstream economic theories, perfect operational procedure has been created. Because of the strategy of state economy changed , state-owned corporation will retreat from competitive industries . And MBO has been considered as one form of retreat ways , theorist , industrialist and bill brokers have paid close attention on the MBO.Three stages has been identified about the development of the MBO in China , and there are some special material characters in each stage, but many typical characters exist in all stages. Comparing with western economic countries with mature market , MBO is very different in the practice in China , and lots of problems come out . The serious problems of those include : the problem about the validity of MBO, the low price of asset conveyed, lack of the information represented about MBO, management entrenchment, the contradict on the benefit , the bad effects on achivement after MBO, and so on. There are so many problems in the MBO, this paper has represented the detailed analysis about the causation. According as the causation of the MBO , many measures have been brought forward, such as nailing down the buy-out qualifications of MBO , the capital of the states arriving as early as possible, setting up scientific mechanism and process of price , enhancing the intendance of MBO , and perfecting the law systems .After detailed analysis , this paper has represented that the MBO of stock-market corporations in China is inevitably and reasonably at present , many problems existing in practice as the low rated price as the result of nonstandard operations in the process. By the arrangement of competitive property right trades , MBO will develop very fast in the future.