Empirical Study On The Performance Of Listed Firms Of MBO

Management Buyout evolved in 1970s. It emerged and grew up with the wind of innovation of financial markets in European countries, and became a strong stream in the revolution of organizational structure and corporate governance in the last twenty years in western countries. As a mature method of Leverage Buy-out in developed market, MBO took a huge hope in the corporate governance structure.In china, Management Buyout (MBO) has been experiencing for almost one decade, whose implement has become one of the most important forms of asset restructure and resources re-collocation in China. Solve the obstacles and hence explore a more suitable model is the major concern in the market. So a qualitative and quantitative study of MBO in Chinese market will have an important and practical meaning.In this paper, we took the listed companies as our samples to discuss the MBO's characteristic in China. The sample companies should have experienced the MBO between 1996-2004. By the qualitative and quantitative methods as well as the SPSS software, and using the analytic approach of the accounting index, Factor Analysis method, we discuss, such as:①T he definition of MBO, the basic theory of MBO and the main controversies,etc.②Using the analytic approach of the accounting index, Factor Analysis method to analyze and adopt sure method of inspection ( T examining method and Z examining method) examine results of MBO. Through empirical research, we find that there are no reasons to support the performance of the target companies after MBO superior to which before MBO. It is indicated that the performance of target companies were not improved.③Corresponding proposal and strategies aimed at improving the MBO's practice , such as improving the pricing way, opening the channel for nominating the independent director for the board, reforming the mechanism of information releasing, financing as well as the supervision system, etc.