The Reorganization Of The Management Buyouts Of Listed Companies In China Performance And Its Driving Factors

Management Buy-outs (MBO), as a special implement of LBO, has had a long history of development in Europe and America for more than 30 years. It has achieved tremendous development in capital market of West World because it can obviously reduce the principal agent cost, protect resource capital values, strengthen incentive constraints and exert entrepreneurs' spirits. As the related policy and legal regulations enacted in China, MBO arose more furiously disputes about wether MBO is good or bad. Many researchers make debates on MBO motivation, pricing, performance and financial characteristics. So exploring the scientific evaluation of reforming performance and effective pattern of MBO in such economic transiting background will give great guidance on how to solve the obstacles in practice of MBO.In academic part, this paper discusses on developing background of MBO, related theories of MBO and relative researches on demonstration of MBO. And then we conclude that MBO in China has intersexuality, one is value creation, and the other is transfering wealth. This paper also collects relevant data from a sample of listed companies that conducted MBO from the year 2000 to 2003. Based on statistical analysis of these data, this paper uses a more scientific and external approach to evaluate the reforming performance of our MBOs. In addition, this paper also use the One-Sample and Independent-Sample T-test, linear regression and cluster analysis to find the important driving factors that influence the performance of MBO reform and to conceive an optimized pattern of MBO that can match the prominent driving factors well. This pattern can engender best and long-lasting performance. All of these can not only prove that MBO is a better instrument of reformation of property rights and state corporations, but also lead the development of MBO to more valid and positive direction in future.Through both theoretical and case studies, this paper has drawn some beneficial conclusions to our economic construction, and provides with some corresponding and meaningful advice for the future of MBO.