Research On Reform And MBO Of State-owned Enterprises

Our government has been exploring ways of state-owned enterprise reforming to raise work efficiency and to achieve sustained development nowadays. Meanwhile, management buy-out, which is referred as MBO below, as a kind of effective way to stimulate employee initiative and improve enterprise management status, has been widely used abroad. Whereas, in what aspect that MBO will impact on our state-owned enterprise reforming is a project worth exploring.Management buy-out is a way of state-owned enterprise reforming. After implementation of MBO in our state-owned enterprise, whether it will be resulted into good as the same as implemented in foreign companies? The key point lies in that company governance structure must be fulfilled during the process. Therefore, this paper aims to analyze the impact of MBO during state-owned enterprise property rights reforming and corporate governance structure improvement.MBO in state-owned enterprise reforming is a common topic and many domestic scholars have done plenty discuss and research on the project. However, most of the scholar research is theoretical research but not empirical analysis. Acquired through XX chemical Group MBO case study, this paper will point out the problems occurred during MBO implementation and raise proposals for problem solving. Meanwhile, the author hopes it will be helpful for XX chemical Group management practice, and also provide a study example for scholars in this aspect in the future.Firstly, this paper provides an overview and comparative analysis of MBO development both at home and overseas. Due to different generation backgrounds, inconsistent implementation of motive, unequal MBO subjects and unlike financial markets, the financial is different accordingly. These causes lead to the conclusion that foreign MBO experience could not be copied into our state-owned enterprise directly. Secondly, elaborating general conception of MBO and corporate governance, this paper analysis MBO development in our state-owned enterprise. As MBO plays an important role in our state-owned enterprise nowadays, it provides solution to absence possessor, costly agency, asymmetry information, etc. However, it is necessary to rely on corporate governance to solve problems happened along with MBO. MBO is not a panacea. It requires a combination of MBO and corporate governance to make a smooth reforming in state-owned enterprise.Lastly, this paper analyzes through XX chemical Group MBO background and acquisition, and figures out the differences between XX chemical Group and other companies which lead to an uncompleted MBO implementation in XX chemical Group. The paused MBO in XX chemical Group causes two-side effective, and presents related problems in front of us, such as dominance for big shareholder, interests damage to small shareholders, no change in top management thinking, etc. To solve these problems and make smooth MBO implementation, this paper proposes to emphasize on strict procedure and importance of bringing in strategic investors.