Managers Leveraged Buyouts In The Restructuring Of State-owned Enterprises Secondary Research

Since the late 1990s,to extricate themselves from dire straits, a number of former state-owned enterprises (along with some other enterprises of public ownership), after their transformation of joint-stock system, have implemented the second institutional reform focusing on property rights reform, to improve the property rights relationships by means of Management Buy-outs(MBO). It is of great significance to summarize and analyze the practice.This paper introduces the principles, development and application of Western MBO, summarizes the problems in the reform of China's enterprises and discusses the significance of MBO. Based on researches and investigations, the author makes a conclusion of the formation and development of MBO in China, and produces three MBO models for different situations. The author also analyzes MBO characteristics and its market environment in China's present economic system. To study the problems for specific MBO practice, the paper takes some practical cases in the enterprise institutional reform in Zhuzhou City for case analysis.On the basis of the above analysis, the paper makes a study of MBO problems in the second institutional reform of China's state-holding enterprises, and finally put forward some strategies to promote MBO development in China.