The Research Of Performance Of Chinese Listed Companies By MBO

Management Buy-outs (MBO), as a new type of leverage financing is widely used in foreign countries and has been widely recognized. While, MBO as a new way to reform the system of property rights has encountered laws, regulations and operating methods in china. The issues such as: Can MBO really improve the performance of enterprises in china?Can MBO play a long-term incentive effects in china? Are there any obstructions for MBO and how can we solve the problems?Those issues attract more and more attention through the world.This paper based on huge numbers of theoretical and research status, summed up some of wealth creation theory and transfer of wealth theory. Through the compare of MBO's implementation between china and abroad, we raise a point of the problems during the process of the Management Buy-outs based on macro and micro aspect. The paper also has been selected 49 listed companies which carried out MBO during 2000-2005 as a sample. The paper has selected 20 financial indicators from profitability, growth capacity, operation capacity, solvency, cash capacity, the cost ratio six areas, the paper analysis the efficiency of the implementation of MBO within [-1, +2] the time window by Using principal component analysis, financial indicators analysis and a statistical method, through this way, we established the scoring model which can value between before and after the performance management buyouts comprehensive. Through a long period of time observe and trend analysis the impact on the operating performance of the MBO target company. Through theoretical and empirical research, we concluded that MBO impact on the performance of enterprises are comparatively low in china, the corporate performance during the MBO has not undergone any substantial change. MBO does not create wealth for the company but has increased the risk. Based on theoretical and empirical research on Chinese MBO, we point out the corresponding policies and proposals: strengthening the market restriction and improve the existing laws and regulations monitoring system; rigorous censoring acquisition main qualification; reasonable choosing the target enterprises which will carry out the MBO; establishing a rational pricing mechanism; regulating financing behavior and broadening the financing channels; strengthening the information disclosure level of the target company which carry out MBO.