Management Acquired The Use Of Research In China

MBO may be the most heated thing in China of 2002. Many big and small companies were going on or gestating one's own MBO plans. Because it has the relationship with the securities market in China, more attention has been drawn on it. With the separation of ownership and management, there comes agency relationship. There are agency costs because of the different benefits and the asymmetric information between the owner and the manager. How to minimize agency costs is a dilemma faced with every enterprise. Some theorists claim that the best way is to make the manager themselves become one of the owners so that their benefits will connect with the owners'. MBO is an efficient approach which can unify the owners' and the managers' benefits.MBO in more mature markets in western countries are focused on the "non-marketization" of the listed companies, or the division of marginal business from diversified enterprise groups, or the privatization of certain state-run business and act as an antidote to acquisitions. However, considering China's market environment, MBO is a different way of evaluating the human resources of enterprises, a way to make huge profits from the difference between the price of common stock and preferred stock.Some economists think that MBO don't fit China's environment at present .The conditions for the vigorous development of MBO in China are not yet mature, relevant laws and regulation are still not available. But someone think that China should be enthusiastic about development MBO, which are necessary part of SOE reform. Whether MBO is suitable for our country's conditions, this article has carried on the discussion.The article is divided into six parts altogether. The first part carries on the brief introduction of MBO, probing into its theoretical foundation. The second part recommends general operation procedure and operative organizations of MBO. The third part has analyzed systemically the difference of MBO between the western countries and of our country. The fourth part analyzes the backgrounds that ourcountry runs MBO in detail. The fifth part points out the questions in the course of operating MBO at present in China. To perfect MBO in our country, the author puts forward some suggestions and countermeasures finally.