Practice Of Management Buyouts In China Study

As a means of capital operation Manager buy-out(MBO) has been introduced to china in 1990's. MBO affords a new way to think about and a trial for the returning of the individual firm's ownership, the lowering cost of principal-agent relation and the state owned assets' strategic withdrawing from competitive fields in economy. However, China is in a different stage of economy development as well as the institution and environment of market compared to market-developed nations, MBO in China shows some certain Chinese characteristics and at the meantime it causes some lost of state owned assets. In the year 2003, MBO was highly paid attention due to a discussion of "the road of the reforming of SOEs' properties ".My thesis tries to analyze and research the MBO from theory and practice. Firstly, through a review and description of relevant economic theory on the issue we will clarify the theory basis of MBO. Secondly, by the effort of accumulation of plenty of cases and data, we will make a practical analysis on the MBOs which haved happened in China and come to a primary conclusion. At last, on the former basis of the analysis and studying, we will say that as a means of capital operation MBO needs regulating and binding in terms of law, market, institution etc. Thus we can assure the MBO will develop effectively and will be a new profitable road guiding the reforming of the SOEs.