MBO In China And Research On Trust Model Employee Stock Ownership Plan

Since there are not special laws to refer to, Management Buy-outs (MBO) and Employee stock Ownership Plan(ESOP) are facing lots of obstacles in practice. How to solve problems relevant has been a hot issue.Integrated by theoretical study, comparison analysis, model establishment and case analysis , this paper makes a investigation about feasibility and efficiency of conducting trust system into MBO and ESOP field. The paper firstly introduces the theoretical knowledge of MBO, ESOP and trust. Then it finds out the problems in the process of the carrying out them in china, by the comparison of MBO and ESOP in china with those abroad. On the basis of this, it presents a practical model of MBO and ESOP, and studies the procedures, elements and functions of the model. At last, it verifies the all kinds of problems in the practice of MBO and ESOP in china through a case study.On the conclusion, it argues that trust of MBO and trust of ESOP are practical ways in china and have a bright future, in that it can not only over come the obstacles arising from present rules and regulations of MBO and ESOP, but also regulate the marketing behavior of employee to own stock, protect the benefit of the stock owner.