Chinese Listed Companies MBO Performance Analysis

Management Buy-out (MBO), reform in property relations, has developed rapidly in recent years, more and more cases of MBO happened in China, which demonstrated its strong vitality, But in the process of implementing, MBO often runs into different problems in terms of laws and regulations, government and mode of purchase, which aroused widespread controversy. How about the efficiency of MBO? So a qualitative and quantitative study in Chinese market will have an important and practical meaning.This paper first introduces the concept and the theories of MBO. Then the paper establish a entrepreneur choice model to a analyze MBO, which points out the performance of MBO is affected by investor protection level,reasonable pricing and the reasonable reward before MBO. This paper also collects relevant data from a sample of listed companies that conduct MBO from the year 2001 to 2002, using comparative analytic to study the performance of MBO.Through the study, we have drawn the conclusion that MBO did not improve operating performance of the listed companies We put forward some corresponding policies, including: Setting up the relevant laws; Solving the problem of fixing price by introducing completitive mechanism; Developing the active investors and MBO fund; The exaltation of investor protection .