Acquisition Based On The Financial Effects Of The Management Of Listed Companies In China

It has been more than 20 years since the research of Management Buy-out (MBO) by the British economist Mike Wright, who defined this phenomenon normatively on 1980. Practice has proved that MBO was useful to the insider incentive, agent's cost reducing, improving the state of enterprise's management, so MBO is widely used in American-European countries. The naissance of MBO is considered as an "effective governance mode". After MBO, the managers become holding shareholder through credit tools, and ownership and management are combined into a single unit, which dispelled the foundation of the agency cost.In recent years, MBO as a system innovation has widely being concerned at the background of national economy's strategy reorganization and reform of state-owned enterprises. Although only a few years time, the development of MBO is very rapid in China. However, because the limitation of the background of China's legal system and financial market conditions, some enterprises take irregular movements in operation of MBO in order to avoid obstacles, which easily results in abnormal problems and difficult points, MBO becomes one of the hottest topics in the business community for a time.Up to now, Chinese academic research on MBO focused on the technical operations of MBO such as financing and the resulting issues because of financing, they have carried on research and practice in implementing MBO from different angles, but seldom on financial angle. My paper chooses to the financial angle as an innovation. Because not find any other relevant research yet, and most articles more or less have limitation in the financial effect analysis, we need to further improve and perfect. My paper wishes to make some exploratory attempts in this aspect.Above all, according to the logical order, this paper is based on the current status of China's capital market, and use combinable method of qualitative and quantitative analysis. In the first part of the paper makes a review about MBO, then depthly analyzes the basic financial effect theory of MBO, which purpose is to lay the theoretical foundation for the following article. The second is to compare and analyze the MBO between foreign countries and our country, discovering the problems and shortcomings on Chinese MBO. The third is to analyze the problems in Chinese MBO from the financial angle with the gamble analysis and quantitative analysis. Finally this paper puts forward some advice about how to put this MBO system into practice, in the hope of drawing an accurate and clearing outline of Chinese MBO present situation and the future.