Study On Yaxing Chemichal Management Buyouts And Exproriation

Management Buyout(Management Buy-outs, referred to as MBO) in the United States and Europe has thirty years of history. Unlike the western developed countries, China’s MBO started a little late. 1997-2003, China ushered in the climax of MBO. However, in many of the implementation of the MBO has given rise to many negative effects. In 2003, the Ministry of finance made an emergency stop for MBO.However, in practical applications, a variety of "invisible" and "curve" MBO is creatively applied to avoid policy constraints. In the development of national policy and regulation of enterprise demand, MBO has become a research topic. In view of our current market environment and institutional environment, we can not copy the experience of foreign countries. Therefore, this article in the reality of our country market environment and institutional environment in the context of YAXING chemical MBO research can not only enrich our country MBO theory, but also it can provide some reference for the practice of the property right reform of China.The article mainly uses literature analysis and case analysis of MBO and the interests of the occupation,and combining with YAXING chemical MBO case. In the specific case analysis, this article first introduces the implementation way of MBO and basic situation of YAXING chemical YAXING chemical;secondly, the paper used the statistical method to analyze the management after the completion of the acquisition of continue to use related transactions, transfer of assets and funds etc., bear the long-term occupation of the interests of the listing Corporation; again and analysis of the management of the listing Corporation to seize the benefits of the company after the continuous decline in profits, the overall quality of the company to reduce the damage and the interests of small shareholders, investor enthusiasm downturn situation; finally, summarizes the management after the completion of the acquisition of listing Corporation caused by expropriation, the specific performance in the company’s shareholder structure,failure the defects of corporate governance, information disclosure opaque and external supervision is not perfect.Management acquisition as a special kind of incentive measures, to reduce agency costs, incentive and constraint management, improve operating conditions and promote the company’s growth and improve the efficiency of resource allocation. However, in this study, management buyouts and failed to achieve improve the company’s operating conditions; enhance the desire of shareholder wealth. Instead, in this case, management successfully use MBO and advantages of service and internal management, constantly long-term occupy the interests of listed companies, resulting in the loss of state-owned assets, causing irreparable damage to the listed company, but also harm the interests of minority shareholders. Therefore,the combination of the above analysis put forward the following suggestions: first, improve the management of listed company’s incentive system; secondly, optimize the structure of corporate governance; thirdly, increase the listed company information disclosure efforts; finally, strengthen investor protection mechanism.