Management Buyouts In China's Way

Along with China's entrance into WTO and the gradual establishment of the market economy, the government will change its economic management, only applying macro control. State-owned economy is necessary to experience strategic adjustments. State-owned enterprises will gradually withdraw from industries full of competition. On the other hand, there are still many serious problems of property in China's enterprises ,including the unreasonable structure of property, the high cost of agency ," internal person control", lack of effective mechanism of motivation inside enterprises, etc. Therefore, the property mechanism of enterprises needs completely reforming. Seeing to the rapid increase of MBO in recent years and the sudden prohibition from the State Council, this dissertation comes to such a conclusion as MBO is suitable for and helpful to the reform of China's enterprises. Thus, MBO should be allowed so as to play its full role.The dissertation concludes five chapters: Chapter 1 clarifies relevant theories to MBO. In chapter 2, some models of MBO in China are given. Chapter 3 tells us the great meaning of MBO to the reform of enterprises. Chapter 4 analyses the disadvantages of MBO under present situation; Chapter 5 tries to find some suggestions for our nation's development...