The Research On Financial Performance Of The Listed Companies' MBO In China

Management Buy-out is an acquisition approach that company's management use leveraged buyout or transactions of stock right to purchase their company. The purpose of MBO is becoming management into the enterprise ownership. In self-motivation mechanism management can display their subjective initiative; create more value for the enterprise.The author conducts an empirical study of financial performance about listed companies' MBO in China to verify whether MBO is beneficial to the good development of listed companies in China. Through the financial performance of sample empirical research can reach the following conclusion:As far as profit-making ability, the overall profit ability after MBO appeared signs of abating, but MBO behavior did not cause obvious influence for the profit ability of listed companies; As far as operation ability, accounts receivable turnover increased obviously after MBO, the listed company's operation ability got remarkable enhancement; As far as debt-paying ability, MBO behavior caused significant effect debt-repaying ability, make its debt-paying ability decreased obviously; As far as growth development ability, MBO behavior made the main business growth of the listed companies drop significantly, the growth development of ability of listed companies after MBO declined trend. Through the principal components analytic method of comprehensive performance score observation:the financial performance comprehensive score of the listed Companies' MBO in China did not surpass the advanced. MBO did not bring the whole financial performance improved.In short, in our country's current conditions, MBO behavior is not suitable for mature enough to state-owned enterprise especially large state-owned enterprises.