The Study Of MBO In Reform Of State-Owned Enterprises

Management Buy-out (MBO) is a new mode based on the traditional theory of merging. MBO has been widely applied in England and USA because of its positive effect on inspiring with managers, reducing cost of agent and improving status of corporations' work. MBO appeared step by step with the innovation of property right in China. At very beginning, MBO was endowed with special mission—solving the problem of enterprises' property right in China. A dispute between a scholar of Hong Kong named Larry. H. P. Lang and a businessman named Chujun Gu causes a large scale discussion in academic world on whether MBO is needed, whether Chinese economic reform on property could be feasible and so on. The main focus of the discussion is that MBO in reality has brought loss of state assets and that some relative sides, like employees and small stock holders, lose their due interest in the MBO process. The end of Gu' fable caused strong social echo. So, is MBO available for China? MBO is effctive in western market economy system, but MBO disimilated in China. Is MBO available for any organization or any enterprise in China? Aiming at these problems, this thesis focuses on studying the feasibility of MBO in China, problems that MBO encounters in reality and ways for MBO to break through.The thesis discusses mainly the universal meaning of implement in any state-owned enterprise and the problems which occurred in process of MBO implement at present. The thesis starts from introducing the evolvement of MBO in western countries, then states and analyzes the common theory which combined with facts of our country's enterprises. After this, it shows mian problems that MBO and the innovation of preoperty right encounter in reality through a case study of MBO in a state-owned enterprise. In the en, it provides ways to further state-owned enterprise reform. The conclusion of the thesis shows, MBO isn't available for big-sized state-owned enterprises which is vital to economy and have special function and strongpoint in China. But MBO which is a effective reform way is available for small and medium-sized enterprises in China.The key to implement MBO is to improve institutional environment and build up democratic procedure which every relative sides can take part in. The thesis uses many study methods like comparison, case study and normative analysis. It aims at revealing defects in MBO theory and its application and providing ways to further state-owned enterprise reform. Therefore, the thesis must have positive meaning for understanding MBO correctly and furthering state-owned enterprise reform.