Regulate The Operation, Management Buyouts Of Listed Companies In China

Management Buyout evolved in America in 1970s. It emerged and grew up with the wind of innovation of financial markets in European countries, and became a strong stream in the revolution of organizational structure and corporate governance in the last twenty years in western countries. In China, from SiTong began to carry out MBO in 1999, MBO has already become a new tendency of mergers and acquisitions in the capital markets. It has been proved that MBO is a good method for the reform and reunited of state-owned enterprises. But because the capital markets are still immature and laws and rules are not perfect, a ray of problems and obstacles emerged when our corporations implemented MBO, such as trade ways, financing methods, means of payment, etc. The only way for us is to probe MBO which fits for our country, and to standardize its operation. The study about the listed companies' MBO is meaningful and important both for theoretical and realistic fields.This paper mainly countered the problems in the practice of our listed companies' MBO, and then put forward suggestions, in order to guide and standardize MBO in our country. So that MBO can develop perfectly, then encourage the managers, improve the profit and strengthen the competence in the course of globalization.In historical, international and realistic views, this paper makes a profound study in several aspects of MBO such as the theories, the mechanisms and the realistic issues. It consists of six chapters. Chapter one is an introduction, which has stated the background of the selected title, significance of the research, research crew and the methodology employed in the study and the content. Chapter two reviews the domestic and international research comment. Chapter three introduces the concept, feature and procedure of MBO, then use an international comparative method to analyze the similar and different of MBO among our country and foreign countries. Chapter four employs the empirical method to analyze the present situation andexisting problems of the listed companies' MBO in our country. Chapter five offers a series of policy recommendations of standardizing and developing MBO of listed companies in our country.Through the research of the article, we got the following conclusions:Firstly, as a system innovation of corporation governance, MBO has broad prospects in our country. It resolved many deep problems which bothered our enterprises' reform.Secondly, through the empirical analysis about the listed companies in our country from 1999 to 2004, serious problems have been found, such as the price of trade, financing channels, supervision and disclosure of information. In the view of theory, MBO is fit for the reform of our state-owned enterprises. But under present conditions, corporations should be careful to carry out MBO.Thirdly, this paper put forward some policy recommendations on the development of MBO. For instance, corporations can raise money through trust companies; the price of trade should be made more scientifically and reasonably; information disclosure and supervision of MBO should be strengthened.