Positive Study Of MBO Financial Performance In Chinese Listed Companies

Management buy-outs (MBO) appeared in America during 1970s and prevailed in the west during 1980s.MBO came into sight as a management style which related to asset disposal and retreat. During the late 1970s, along with the failure of M&A in many companies, people began to doubt the traditional M&A theory. MBO appeared and developed into an important economic force successively.During the late 1990s, MBO appeared in China. In the last 10 years, MBO has played a positive role in the property right reform of the state-owned enterprises and innovation of corporate governance of the collectivity-owned companies, at the same time, some negative effects were brought forth in the operation of MBO. Besides, the theory of MBO in China has also got development to some extent. At the present, MBO has become the focus of the attention of entrepreneurs and academe. The performance study of MBO has significance in theory and practice.In the theoretical part, this paper not only introduces the development, characteristics and the limitation of MBO in the capital market in China, but also reviews the literatures of positive studies on performance of MBO both in China and overseas. Finally, the author introduced three main theories which explained why MBO can improve the corporate performance from value creation, fortune-shifting and management opportunism aspects.Taking 39 listed companies which carried out MBO in China, assisted by the Statistical Program for Social Science (Spss 13.0) , this paper has done a positive...