Chinese Listed Companies. Management Buyouts

All of the problems, which are caused by the improper motivation system, hinder the company's operation and the development of our country equity market greatly. Management Buy-outs (MBO) is a creative and effective way to solve such problem, after which company operation structure will change in accordance with the changing of motivation structure. This thesis starts with analyzing the improper equity structure of listed companies in our country; then analyzes three main problems in order to point out the importance to build an effective invigoration system. Through comparison between MBO and stock option, the author analyzes the advantage of MBO on the aspects of supervision function, human resource operation. Going deeper, the thesis sets forth on management buy-outs operation measures, operation process and operation difficulties. As a connecting link between the preceding and the following, this chapter draws forth the discussion of MBO financing and pricing.On facing the problem of financing,the thesis brings forward the trust solution and MBO fund solution on the basis of financing theory and international experience. On facing the problem of pricing, the thesis sets forth the differences between the traditional pricing model and EVA model on the basis of analyzing the reasons of improper pricing. During the process author finds out the limitation of the traditional model and modifies the details ofEVA model used in China.At last, the thesis analyzes three examples of management buy-outs by utilizing the viewpoints in the thesis.