Research On The Effect Of Mbo Based On Welfare Stock Option

As a result of policy supervision and market changes,the MBO in China's capital market is no longer as active as in the early stage of the split share reform,but the CURVILINEAR and covert Mbo is gradually active.Because different MBO implementation methods have different impacts on enterprises,it is of fresh research value to analyze the committed factors of mbo effect from different perspectives.Based on the management buy-out event of Shuanglu Pharmaceutical,this paper takes the principal-agent theory,the echelon theory,the tunnel effect theory,the entrepreneurship theory and the defense-deprivation theory as the theoretical foundation,this paper summarizes the literature research,analyzes the specific case by the method of index analysis,and explores the effect of the management using the welfare stock option to complete the acquisition.First of all,the article introduces the process of the management of Shuanglu pharmaceutical company completing the acquisition by using the welfare stock option,and finds that this acquisition method not only saves a lot of funds for the management acquisition,but also is extremely covert;This is partly due to the "hang-up" of the former largest shareholder,and partly to management's desire for control as a founder.The timing of the MBO is also extremely good and the stakes are low.Secondly,the paper researches the effect of MBO based on the market and financial performance,then finds that although this event reduces the principal-agent cost of enterprises,the operating performance of enterprises fluctuates greatly and the overall performance is not good,the negative performance is more prominent,the main reasons are:the poor heterogeneity of the management,the risk of extreme decision-making due to the small size of the board of directors,and the incomplete decision-making cognition,and because of the technical background of the management characteristics of the enterprise's business strategy deviation.Finally,based on the case study,the paper draws some enlightenment from the perspective of related interest groups and corporate governance:the former largest shareholder of enterprises should be vigilant of "covert Acquisition";Enterprises should properly enrich the heterogeneity of senior management,adjust the size of the board of directors and avoid the situation of "one voice".In addition,it is suggested that welfare stock options be effectively restricted,the bidding market of Mbo be improved and the relevant laws and regulations of Mbo be perfected.