Research On China's Listed Companies In Management Buyouts (mbo)

The MBO had always been paid special attention in our country. Thisarticle firstly outlines the definition of MBO and theories about it andthen introduces its background, development process and positive sense.On the base of these, this article analyzes background, history andcurrent situation of the implementation of MBO by companies in China. Forthe empirical aspect, this article chooses the cases of Yuemeidi Companyand Wuzhong Company to have a through research.Through the analysis, this article makes the conclusion that in thecontext of imperfect market economy system and system environment, theMBO in our country is still in the stage of starting point. So it isinevitable that we are faced to lots of problems in the process of MBO.These problems includes the legitimacy of purchasers, the fairness ofpurchase price, the origin of fund, the asymmetrical situation and thedisclose of information, the independence of companies after MBO, theimpact assessment of companies after MBO.At the same time, this article also proposed some countermeasures andsuggestions to solve the problems existed in the process of MBO in ourcountry. At first, the government should consider improving the currentrelated rules and regulations and supply a reasonable and loose policyenvironment for the development of MBO;secondly, under the premise ofnot harming national interest, the government should determine reasonablepurchase price and try to harmonize the interest of different stakeholders.Thirdly, the most important means for the solvement of problems is to openup the MBO financing channels;In addition, some other regulatory measurescan be also used: improving the openness of MBO information;emphasizingthe regulation on the companies after MBO;developing various financialinstitutions and intermediaries;exerting system innovation and meansinnovation.