The Law And Economics Analysis On The Yellow Light Effect Of Management Buy-outs

Under the stimulus of the yellow light signal, people will quicken one's step rapidly, try to obtain the preemptive advantage by getting through the crossing before the red light brighten, this is "Yellow Light Effect". "Yellow Light Effect" exists in the transition society such as China diffusely: Brand-new behavior and phenomenon are emerging constantly in the economic life, so some old norms become invalid because of far breaking away from reality condition, at the same time the new norms is difficult to set up within short time. The new behavior mode may bring huge proceeds to the actor, but may bring the cost to others at the same time, so it need to be strictly controlled, even to be forbidden, so people that pursue maximizing economic interests will try his best to choose to finish the corresponding behavior before the government promulgate relevant law which strictly control these behavior or forbid it. The Management Buy-outs of our country have come forth remarkable "Yellow Light Effect": Before the State-owned Assets Supervision and Administration Commission promulgate the norm which forbid the large-scale state-owned enterprise and listed company to carry on Management Buy-outs in 2005, large quantities of listed companies lead up to implement "Management Buy-outs". This text concentrates the studied focus on the explanation of the Yellow Light Effect of the "Management Buy-outs" through two respect analysis and explanation-the law and economy, illustrate the idiographic causation and deep inducement which result in the Yellow Light Effect of Management Buy-outs ,and point out that the measures which can weaken the yellow light effect, as well as the revelation to the development of Management Buy-out in the future which the yellow light effect tells us.Through observing the evolution of Management Buy-outs in china, we find that it came through three stages basically: The green light Stage , The yellow light Stage, and The red light Stage, that correspond to the stage as follows separately: the relevant legal system is relatively lack and loose, the stricter regulation is being promulgated continually (the yellow light flashes frequently ), the Management...