Management Buyouts And Its Development In China

Modern enterprise system is charactered by the separation of ownership and management Management Buy-outs (MBO) is a rebellion against modern enterprise system .It pursues the unification of ownership and management Which system is better? There are different opinions on it I think, the existence of MBO has its rationality, that is, its theoretical support. In practice, the MBO in other countries plays an active role in promoting the enthusiasm of managers, reducing agence cost and improving operating conditions .In our country, MBO provides an effective way to the right definition of propriety. The major questions MBO is faced with in China are pricing and financing. Pricing rationally and broadening financing channels become the focus I concern. Certainly, MBO has its requirements that are applicable. Whether implementing MBO, it is decided by the situation of the enterprise.The thesis is composed of three parts:The first part introduces the connotation of MBO, which consists of three aspects, the emerging reason, the definition and the process of operating.The second part expounds the theories of supporting MBO, including agente cost theory, incentive instrument theory, corporate governance structure theory and so on.The third part elaborates the development of MBO in China, introduces the backgrounds and present conditions, raises the questions to be resolved urgently, expounds the major questions, that is, pricing and financing, analyses a typical case .finally summarizes the thesis.