Research On The Incentive Effect Of Management Buyout Under The Background Of Mixed Reform

A new round of reform of state-owned enterprises of mixed ownership is carrying out drastically.Management Buy Outs which is short for MBO,was an important means of the last round of the reform,and led to the practice upsurge at the beginning of introducing into China.But due to the loss of state resources and other negative effects,very few scholars pay attention to.Based on the background of the new state-owned enterprise reform mixed,this paper analyzes Lingrui pharmaceutical factory.Before the main analysis,this article arranges the process of Lingrui's MBO.The main part analyzes the incentive effect of MBO that using the method of quantitative analysis and qualitative analysis.It carries out from three aspects:the management,small and medium-sized shareholders,and business efficiency of after MBO.Concretely through the research on executive compensation,equity incentive and job consumption,management agency costs between shareholders and other Lingrui pharmaceutical has decreased which confirms managers have positive incentive;comprehensive analysis of dividend and related party transactions,the research do not find obvious evidence of "tunnel effect",to the contrary,small and medium-sized shareholders is willing to share the profits and benefits;at the same time the analysis of financial indicators the company's profitability,operating capacity and solvency prove that the company's operating efficiency for MBO is enhanced.This paper not only confirms the positive incentive effect of MBO,also makes a summary of the premise of incentive effect,and puts forward some feasible suggestions on how to play the incentive effect further.Also hope to provide a useful reference for state-owned enterprises to a new round of China's mixed ownership reform practice.