MBO Path Innovation And Effect Evaluation Led By State-owned Assets

As a form of leveraged buyout,MBO has been widely used in the development of market economy because it is conducive to the improvement of corporate governance structure and operating efficiency.In the 1990 s,MBO was gradually introduced into China as a mode of enterprise restructuring,and people regarded it as a "panacea" to promote the reform of mixed ownership of state-owned enterprises.People hoped to clarify the property rights of state-owned enterprises and improve the operating efficiency of state-owned enterprises with the help of MBO.However,due to the imperfection of relevant laws and regulations and information disclosure system in China,many problems such as nonstandard process,opaque information,wealth transfer and loss of state-owned assets are gradually exposed in the implementation of MBO.Therefore,in 2005,the government issued a policy to prohibit the transfer of state-owned shares of large-scale state-owned enterprises to the management.In spite of this,there are still many state-owned enterprises to achieve MBO in the form of curve.But the relevant case studies are gradually reduced.In July 2016,with the announcement by SASAC that the Interim Provisions on the transfer of state-owned property rights of enterprises to management was abolished and invalid,the exploration of MBO as a mixed reform path for state-owned enterprises began again.Under the guidance of Shanghai SASAC,the exploration of curve MBO as a mixed reform path for small and medium-sized state-owned enterprises has been gradually carried out.Based on the theory of MBO,this paper summarizes the implementation mechanism and economic consequences of MBO,and analyzes the application scope,implementation conditions,operation mode and existing problems of MBO in China.This paper takes the curve MBO event of PDSTI as a case study,analyzes its unique form of management buyout.In addition,this paper analyzes the positive significance and shortcomings of the MBO of PDSTI.Through the study of the economic consequences of the affiliated enterprises,this paper draws the conclusion that the benefits of the event outweigh the disadvantages.On the basis of summarizing the relevant issues,this paper puts forward relevant suggestions from the perspectives of government,company and management.Government should take the initiative to find out the role of the government in the MBO,formulate and improve the relevant laws and regulations,standardize the market order,and strengthen the guidance.Companies should improve their internal governance structure and equity incentive mechanism.Managers should give full play to their abilities,take the corresponding legal responsibilities and protect the legitimate rights and interests of small and mediumsized shareholders.Based on the above content,this paper attempts to provide case reference and suggestions for the reform of mixed ownership of state-owned enterprises in competitive industries in the era of full circulation.