Applicability Of Management Buyouts In China

As a system innovation, MBO (Management Buyouts) has positive functions at enterprise effective conformity, decreasing agent costs, clearing property right relationship, criterion corporate management and has become a way of withdrawing national capital. At present, although Chinese enterprises have done some beneficial explores and practices, there are still some defects and problems in MBO, because MBO in China is still in development. From the cases that have used MBO, due to lack the intendance of system and law, MBO has many problems and locates out of order at all times, which makes the basic purpose achieve difficultly, and then gives birth to some abnormal phenomena, such as national capital flowing away, related transaction and authority united money. From MBO fashioned to be paused by ministry of finance and to be allowed MBO in middle and small size enterprise by the dispatch of national capital management committee, from among we can see the circuitous development and faintness of policy about MBO in our country.The thesis is divided five parts. The basic contents are as follows:In the first part, it expounds MBO development actuality and according theory, including the definition, applying range, development actuality, according theory, and existent meaning of MBO.In the second part, it analyzes implementary actuality of MBO in our country, which contains the explanation, characteristics analysis about the development actuality in our country and summarizes the applied worthiness in our country.In the third part, it accounts for the problems and reasons in the applied process in our country. The main problems are the income price problem, the financing problem, the information report problem and the new insider control problem. The main reasons are the long existent problem of deputy, the seeking rent action of government and the information dissymmetry.