Research On MBO And The Reform Of State-owned Enterprises In Northeast China

Old Industrial Base in Northeast China is the cradle of Chinese industry, referred to in the independence and integrity of our industrial system and national economic system. to the country's reform, opening up and modernization, make a significant contribution. Since the beginning of reform and opening up, especially since the 15th Party Congress, the three provinces in Northeast China actively adjust the layout and structure of state-owned economy. establishment of a social security system and resource depletion in the region such as economic restructuring carried out active exploration. Due to the long-term impact of the planned economic system, however,the reform of state-owned enterprises in northeast China and restructuring of state-owned economy stagnated relatively. And the deep-rooted contradictions accumulated over a long period of further manifestion.It mainly shows that: poor quality of assets of state-owned enterprises, low economic efficiency, high proportion of the state-owned economy, unreasonable structure, the owner of state-owned enterprises. holders and business management objectives and values and inconsistencies. Entrepreneurs in particular, as the owner of state-owned enterprises between the central government and the agent acting for too long chain. It leads to asymmetrical information, and control of the remaining key of business owners often can not be guaranteed.In view of this situation, this paper pointed out we need to revitalize the northeast and the Northeast's economic development must establish effective incentive and restraint mechanisms, fully mobilize and give full play to the initiative and creativity of enterprise managers, tap the potential of human capital. However,the establishment of such a mechanism is an effective form of management buyouts. MBO is the only reform of state-owned enterprises in northeast China's rational choice . MBO target company's management is to leverage the financing to complete the acquisition of the target company. It can effectively and closely linked to the interests of the company and management, internal management has played a positive incentive, cut agent costs and improve enterprise performance and other aspects of an active role. This article just discuss on this : the feasibility , design options and the capital sources of MBO.