The Dynamic Of The Listed Companies In China Mbo, Performance And Application Of Research

Management Buyouts (MBO) achieved tremendous development between 1970s and 1980s in Europe and America. The practices in western countries have proved that MBO are beneficial to reduce the principal agent costs, protect human resource capital values, strengthen incentive constraints and exert entrepreneurs'spirits. As a institutional layout of making clear the property rights, retiring the state-owned assets and strengthening the incentive constraints, it has also achieved tremendous development in China. For the limit of the imperfect laws and regulations, the development of MBO in China have been concerned and suspected widely by the whole society. Some people even fully denied the property of the development of MBO in China, and they thought that MBO was not fit for China.The paper makes a systematic comparing analysis between the causes of MBO in western countries and China, applying the principal agent theory, human resource capital theory, and property rights theory, and so on. And we get the conclusion that there is the same incentive causes in China MBO and overseas MBO, and it is enterprise authority arrangement trend in knowledge and economy era. The difference is that domestic MBO is the result of institutional transition, but the overseas MBO is the competitive choice, and in China the price difference in share transactions makes managers have the goal to acquire the profits. This article analyzes the game relationship of MBO in China, and proves that the root caucus of China MBO non-prohibiting for the different behalves between local government and national assets management department, and between the representatives of state stockholders and managers. This paper makes an empirical analysis of the MBO performance of 26 listed companies in China and proves that MBO are beneficial to improve company's performance, and further we analyze the problems, which exist in China MBO, and gives some suggestions, we think that the rational action to MBO is to give proper guides, instead of prohibiting it simply.Through the research of the paper, we think that, MBO as an important mean of enterprise mergers and acquisitions, it's beneficial to improve company's performance.