The Empirical Study Of MBO And Efficiency Of Administration

The economy of marketalization in China is rapidly and swiftly developing, the demand for reform on the ownership is very urgent. Management Buyouts (hereinafter as MBO), a main method to change the ownership of company,has been widely taken by more and more Chinese corporations. The essay analyses the motivation and behavour of MBO in the current Chinese economic background and place the target on disclosing the relationship between MBO and Efficiency of Administration. The essay also points out some representative problems underlying in MBO operations and tries to guide the orientation and development of MBO in China. Practice-Joint-Theory is the study measure of this essay while empirical study is thetechnique. The essay construes the existing surroundings and developing impetus of MBO after introducing its history of the development. This essay also consists of Pricing andFinancing, two key factors of MBO. As a matter of fact, MBO operation in China leads tomany kinds of economic issues while it has won healthy and orderly development in thewestern countries. That is why the essay at the same time forward its doubts on theChinese companies about their motive rationality, pricing equity and finance feasibility when exercising MBO.The most effective way to remove the doubts is to make empirical study throughwhich the data and fact say. The essay samples data from some joint-stock Chinese companies and chooses the size and fortune as guideline. After transverse contrasting the companies which applied MBO and those did not apply MBO in the industries of textile manufacturing, plastic manufacturing and electronic appliance manufacturing, the essay come to the final conclusion that in Chinese corporation, MBO and their Administration Efficiency is not interrelated, even anti-related under the current Chinese economic background.