| Management Buy-outs (MBO) is a kind of new forms of leverage,produced in the nineteen seventies. The implementation of MBO canrealize the ownership and the right to operate a unified, effectivesolution to the principal-agent problem, therefore, in a foreigncountry is widely used and accepted. But in our country, themanagement buy-outs is regarded as a kind of ways of reformingproperty system, in the implementation process has encountered aseries of problems. Among them, both in theoretical circle andpractical circle is the focus of attention of MBO can really improvethe performance of the company. For this problem, theory circle hasgiven many explanations, resulting in two different views: wealthcreation theory and the wealth transfer theory. Wealth creation thatMBO can create value and wealth transfer theory; that MBO did notbring any substantive changes, but wealth from other stakeholdersare transferred to the management layer.This paper systematically expounded the management buy-out (MBO)related concepts, theories and on the basis of the developmentprocess, has selected53Chinese MBO listed companies as researchsamples, using principal component analysis and factor analysis onthe combination of MBO listed company financial performance in MBOafter five years empirical research, in order to explore themanagement buy-out (MBO) of the target company’s financialperformance. From the results of this paper can be seen, the listed company of our country MBO did not give an enterprise to bring toimprove financial performance, the financial performance in the MBOperiod and no breakthrough. At the end of this paper, in order topromote our country company management layer buys is not a simpletransfer of value but to realize enterprise value enhancement, wesuggested the importance of perfecting related laws and regulations,on the acquisition of qualification strictly examine, must establisha rational pricing mechanism, standard MBO financial behavior andfinancial innovation. |
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