The Research Of MBO In The China's Small And Medium-sized State-owned Enterprise

Under the background of the reform of China's state- owned enterprise and the strategic restructuring of state-owned capital, as a way of the reform to the property rights system, the MBO have been introduced into China. However, there are some problems existing in the actual operation of MBO in China, it's only allowed to be applied in the small and medium-sized state-owned enterprises. This paper analyzes the feasibility of MBO in the small and medium-sized state-owned enterprises, and finds out the problems existing in the MBO, probes into the conditions and limitations to the function of MBO which implement in actuality. Then point out the small and medium-sized state-owned enterprises hasn't the conditions of MBO. This paper thinks that the reform be implemented under the premise of the conditions possessing of the MBO can incentive the mechanism can really play their due role, thereby effectively promote the reform of state-owned enterprises.This paper analyzes the positive and negative effects of MBO, and studies the practice of MBO in the developed market economy countries, then points out that should have certain prerequisites before the implement of the MBO: a perfect market environment, the specialization of the main body of MBO team spirit, a better financial situation of the object of MBO, and the relatively decentralized of the ownership structure. To avoid the loss of assets the in MBO effectively, MBO must have the system arrangements of a sound legal environment, the formation mechanism of price and financial system, etc.On the basis of the basic theory of MBO, the prerequisite of MBO and the system arrangements, the paper analyzes the feasibility, the prerequisite and the actualities of the system arrangements. The paper thinks that lot's of small and medium-sized state-owned enterprises do not have the prerequisite for MBO in China, the system arrangements are different from the situations of the developed market economy countries, mainly includes the lag and lack of the laws and regulations construction; the lack of scientific pricing mechanism for MBO, the financing mechanism is not sound, the professional intermediaries develops immaturely, and the information disclosure regulations is nonstandard. These problems will become the obstacles to the MBO of the small and medium-sized state-owned enterprises. Only to perfect the laws and regulations, improve the financial market environment, establish a rational pricing mechanism, and speed up the construction and perfect of the supervision system of intermediary services, all these can ensure the standard process of the MBO.