Study Of Our National Capitals Form Lapsing And Preventing Of MBO

Management Buy-Out (MBO) has been widely used as an effective way of clarifying the property right, reducing the cost of agents and strengthening encouraging system in Capital Market when introduced into our country in the 20th century. But the poignant criticism on the loss of stated assets among transfer of stated company from emulative industry by langxianping, professor of the Chinese university of Hong Kong, resulted in the discussion about reform of state-owed company, which made it unclear whether we should go on the reform or not. It was forbidden by the state-owned assets supervision and administration commission of the state council in 2004. However, we can notice the visible transformation on management buy-out from the state police. In fact there isn't the inevitable relation between management buy-out and the loss of state-owed assets. It will show the specifically effect which we expect to find if we bring it to bear felicitously. This paper, based on theory of property-right and agents, aims at giving some suggestions on how to prevent the loss of state-owed assets caused by MBO, concept on the loss of state-owed assets among MBO, the reason and the channel on the loss with analysis and solutions to prevent the loss of state owed assets.