Empirical Study On The Performance Of Listed Firms Of MBO In China

In the last decade, because of the deepening reformation of company,structure adjusting ,more and more drastical competition,MBO (Management Buy-out) has been developing rapidly in our country. It has become one of the most important forms of asset restructure and resources re-collocation. Because of the complexity and the diversity of the MBO, not all MBO are successful. Especially, MBO is confined by various factors during the transferring process of the Chinese economy system reform. So, compared with the MBO outside China, the MBO of our country has its characters in many aspects.Firstly , this article analyses the theory of MBO from the view of contract theory,entrepreneur theory and human capital theory. Then, this article compares the MBO in Britain,America, Russia and East Europe and analyses the process of the MBO in our country and its status. On this basis, we study the performance of the MBO companies. To avoid the limitation of single index, we choose several financial indexes which can reflect the performance and establish a function to appraise the general performance of the company. Through empirical research, we find that the performance of MBO companies is better than the contrastive companies. Also we compare the monomial index of the two kinds of companies and find that they are only different in some financial indexes. In the research of the relation between stock proportion of the management and performance of their company, we find no obvious relation. Subsequently, we analyze why MBO can improve the performance and find: it can decrease the agency cost ; it can bring pareto optimum result during the game between principal and agent; it can screen the talent of the management. Finally , this article provides some advice for perfecting the MBO in our country.