China's State-owned Enterprises, Reform Of Property Rights

As a form of Merge & Acquisition, Management Buy-Out was brought forward and defined regularly by economist Mike Wright in UK in 1980. MBO has been a very mature and successful experience of Merge & Acquisition as a special way of Leverage Buy-Out in western countries. As well, MBO is becoming one main method of implementing enterprise reforms increasingly which is based on the current background for establishing contemporary property right systems of clear property right, specific obligation, strict protecting and smooth assets' flow in China. In this paper, MBO's revenue and risk is analysed embeddedly in finacial and economic theories respectively. The author points though MBO has positive effects on Chinese capital market, it has a lot of problems, and points farther that MBO's implementing might meet some finacial, fiscal and juridical problems in China. Then the author raises some practicable suggestions about how to solve these problems. In a word, the major tenet of this paper is to make an objective evaluation on MBO's advantage, disadvantage and its nowadays status, through which to drive state-owned enterprise reforms to grow healthily in China.Altogether, there are five chapters. Chapter One presents and summarizes MBO's basic theory; Firstly, the author points that MBO is a special way of LBO and expounds MBO's basic types, characters, capital structure and operating procedures. Chapter Two introduces MBO's emerging background and its abroad and domestic developmental status. This part can supply useful reference to Chinese reality. Chapter Three is about the embedded analysis of MBO's revenue, risk and fiscal performance in finacial and economic theories. Chapter Four is about the study of MBO's abroad and domestic typical cases, in this part, the author summarizes the MBO's characters in China. Chapter Five does not only discuss MBO's significance for state-owned enterprise reform but also point out the existent problems in China. This chapter is discussed surround "the arguing of Mr. Lang and Mr. Gu" and put forward some countermeasures and suggestions against the fiscal and juridical problems in China as well.