Management Buy-and State-owned Enterprises Reform

At present, economic restructure and transition of economic system in Chinese enterprises are at a critical stage. After China's entry to WTO, it is not only important to our enterprise reform, but also to the economic system reform. The establishment and development of market economy will certainly lead to the reconstruction of the main market system. In the process of the development from planned economic system to market economic system, though our state-owned enterprises have experienced the trial reformation of enlarging rights and allowing profits, changing profits to taxes, managing contract and rent, they have not shaken off the hard situation. The reformation of our state-owned enterprise mainly contains two aspects on content: one is to remove the old, that is, by enlarging the sovereignty of enterprise and realizing the separation of government and enterprise, to cut off the relation, between enterprise and old economic system gradually and to create condition for the enterprise to turn to the new economic road. The other is to set up the new, that is, by making experiment and perfecting many kinds of managing patterns, such as contracting, renting, stocking and so on, to realize modern enterprise system gradually. But on process, it mainly experienced five stages: allowing rights and profits, changing profits into taxes, contracting and renting, changing managing mechanism and marketing stock system. These reformation means have temporary promoting function, but have not the ability of supporting the reformation structure of state-owned enterprise.For the sake of the inherent problem to resolve the state-owned enterprise, people go on probing much kinds of methods to resolve, one kind is Management Buy-outs (MBO in brief) in the near future comparatively more projecting. MBO first emerged in England in late 1970s.And MBO has grown rapidly in western developed countries, eastern European transitory countries and Asia for more than thirty years. There are also plenty of successful cases in its maturing history. MBO has been making great impact on managers, corporate organization and financial market. It is well known that the spread of an idea needstheoretical justification, on which western MBO researchers have done a very good job, yet being living, our country situation not necessarily. Management Buy-outs has been a hot topic concerning the current reform of state owned enterprises and a matter of great realistic importance while drawing enormous concern from the circles of enterprises and theorists. Ardent discussions are also being carried on about it. While as far as how to give definition to these phenomena and how to solve the relevant problems are concerned, it is quite prevalent to copy the western economic theories within the circle of theorists. Hence , on the concrete condition of our country and analysis economy problem in our country is the fundamental rule to resolve our state-owned enterprise issue .The thesis comprises four parts. The first part elaborate the necessity that the state-owned enterprise is living establishment at the early days of establishing our country, introduce the history that the state-owned enterprise reforms. The second part is an introduction about the connotation and denotation of MBO, analyses and compares between China and Western country. The third part, it demonstrates that MBO is not being fit for our country reform of state-owned enterprises through many angles. In the last part, at the base of the preceding three parts, it proposes the fundamental problems of the state-owned enterprise and probe the outlet positively.