The Wealth Transfer Effect In MBO And Protection For Benefits Of Small Shareholder

In recent 10 years,the management incentive,as the micro-force of economic development,has been widely concerned by government,enterprises and economic theory.MBO,which is the one of the important method,were being highly praised by management.However,because of the problem of the wealth transfer in MBO,the government makes clear that MBO cannot be carried out recently.Therefore,it is necessary to research on how MBO influence the minor shareholders' interest and how to protect the interest of minor shareholders'.Those researches will remove the main obstacle for insufficient management incentive.And it will also provides some useful suggestions to those problems,such as how to protect the state owned assets,how to clarify the property right of publicly-owned companies,and how to resolve the problem of missing the entity of property right.There are two opposite hypotheses in foreign research on MBO:the Efficiency Increase Theory and the Wealthy Transfer Theory.The Efficiency Increase Theory holds that should encourage the development of MBO,but the Wealthy Transfer Theory stands for restraining the development of MBO.Nevertheless,the empirical study supports the Efficiency Increase Theory further.There also exits two completely different opinions in our country.Supporters think that it's an effective prescription to adjust company's structure efficiently,to lower agency costs,to promote the operational efficiency and to optimize the resources distribution;however,opponents consider that MBO isn't fit for our country.It holds that economic system and market environment in our country isn't mature enough to support MBO.So it can't resolve the problems of corporate governance and agency costs.It will enforce the control of internal staff instead,which will cause state owned assets losing.Hence,there still are a lot of important problems worth to take further deliberate research.Among those,the problem of how MBO influence the minor shareholders' wealth is the significant one.From the view of minor shareholders,the thesis empirically analyses the phenomenon of transferring the wealth in MBO,which focuses on the listed company in our country.It concludes that The Wealth Plunder may be the theoretic explanation in MBO.In the end,it sums up the effective methods to implement MBO,comparing the MBO differences between China's MBO and the foreign MBO,between China's MBO and the changing system countries' MBO.