The Reform Of State Property In The Implementation Of The Mbo Of Institutional Research

The economic reform has been carried on for more than 20 years. Not only obtains great achievements, but meets hard nuts to overcome. The debate of August 2004 made the state property rights reform become the topic. The focus concentrated at the path of the state property loss, and should MBO continue or not.Starting at MBO, basing on Property Rights and Agency Problemsand, looking back the process and present conditions of the reform, comparing with foreign corporate governance model, discussing the difference of MBO between China and other country, can draw the conclusion that MBO needs homologous conditions and environments. Be eager to practise MBO under current system blemishes, loss is unavoidable.There are mainly 5 system problems. The ownership of the state property is not clear thus the principal is imperfect. The beginning is unfair because of lack of bargainor. The dealing is unjust because the information publicity is not normative. The corporate governance is faultiness therefore the new problems appear. Stock market structure problem is the source of loss. The price of merger is inequitable and lacks of financing channel discover blemishes. There are not enough related laws and exists legitimacy obstacle which need to be solved at once.Property rights and agency problemsand are the keys of the solution system. Beginning with property rights, state property has its owner. Keeping fair market competition and enhancing transparency is prerequisite. To make the stock market more effective, not only pricing and financing but agency is important. Establishing management system with reasonable benefit structure, founding organization and mechanism, making use of independent director, and having encourage and restraint are necessary. Strengthening of law and monitoring, improving the policy environment, and ensuring legitimacy are all required. The scope and conditions of MBO is also considered.Starting with MBO we can find out that the system problems should be settled by correspondingly solution system. It is the final intention to boost state property reform.