Research On The Problem Of Management Buyout Which Based On The Performance Of Listed Company

Since reforming and opening-up, with the constant deepening of economic system reform, a lot of profound contradictions are shown out. Property relation is an outstanding problem among them. So China introduced it from the West in 1990s as a kind of way that the state-run capital withdraws. After few years, MBO become a very hot topic and be used at many listed companies. At such background, many researchers discussed about whether the MBO can gives companies good performance or not.From the point of companies'performance, this paper use both qualitative analysis and quantitative analysis, based on the sample companies which carry on MBO between 2001 to 2004,the author use the ability of profit and loss, venture control, growing ability, management capacity. Taking a sample of listed companies issuing A stocks where MBO took place between 2001 to 2004 selecting 12 financial measures such as ROE in terms of solvency, profitability and development etc. The paper adopts financial data comparison method and statistical inspection, there by making empirical study on MBO performance. In order to prove the results. After qualitative test, the author uses the ratio of the average of each index and Analysis of Variance to show its transformation. At the end of paper, the conclusion is as follows: in the short term, the performance of China's listed company is not as good as foreign firms which through carry on MBO improve they profits a lot, by contraries, China's listed company which performance deteriorate after MBO. Then, through analysis, there are several reasons contribute to this conclusion, such as the system of law is unperfected, the limitation of business environment. But the test of MBO by overseas company proved that MBO is a useful method for Property relation reform, so, its may be also useful for China's company after we amend some insufficiency system which include custody, make information clearly, improve channel of money collection, etc. Only through change macro-environment system, China's company can create high performance after take MBO into effect.