| Management buy-out (MBO) refers that company management purchase the whole or partial stock for their own companies in order to gain control of the companies. Empirical research on MBO by Foreign scholars shows that MBO enterprises'operation performance is increased greatly and earning form premium created for stockholders is persisitent.In recent years, MBO become a promising way of purchasing of asset reorganization and resources allocation on the backdrop of the property right reform of state-owned enterprises, which draw a widespread attention and research among scholars. Supporters of MBO model maintain that MBO is a sound strategy to deal with the problem of national property and management incentive, while opponents deem it essential partitionment of national asset.In our country, whether management buy-out can improve enterprises'operation performance and create wealth for shareholder? Based on empirical analysis of domestic MBO listed companies, most scholars found that there is no marked improvement in operation performance but indication of the declining trend in some enterprises compare before. It is concluded that MBO in domestic market will result in negative effect.Through the introduction of the basic concept and feature of MBO, general information about development of MBO and review of related literature at home and broad, the author adopts event-study analysis and factor analysis to analyze stock price of 20 trading days over the 7 years period from 2001 to 2006 among 45 listed companies before and after implement of MBO and 14 financial index data fully indicating companies'performance within 4years. The results of this study reveal that MBO of listed companies has not resulted in a positive wealth effect and no improvement in performance is achieved in a long time but a downturn emerges. Therefore, the author makes some related policy suggestion on how to improve the MBO, hope MBO can come into full play in the reform of property right. |
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