Study On Long-term Impact Of Finance Performance By Listing Corporations’ MBO Of China

In twentieth century since the 1970 s, MBO has become an important means of the rise of the western world new economy. In early twenty-first century, China also rapidly imposed the MBO of several state-owned enterprises. Many scholars have studied the effect of MBO on the company’s financial performance, but the vast majority of studies focused on the short-term impact of MBO and financial performance, and lacked of research of the long-term impact on financial performance. But the research on long-term impact between MBO and financial performance is quite important for companies’ healthy development, So it is meaningful to study this paper.The innovation of this paper lies in analysis of China’s listing Corporation MBO and long-term effect on financial performance through the empirical study.By the CAMAR, the paper selects 15 listing Corporation in the years 2003-2004 implementation of MBO as samples, basing on the previous studies and the 10% holding stocks by the stockers. With SPSS17.0 statistical software for data processing tools, listing Corporation profitability on behalf of the company’s financial performance, three financial index about profitability on behalf of the company financial performance, this paper adopts the analysis method and comprehensive performance scores for principal component model, through the comparison of the implementation financial performance score before and after MBO, to demonstrate the effect of long-term impact on the financial performance of MBO Chinese listing Corporation.The empirical results show that, among the 15 sample firms, 9 sample firms’ financial performance has been positive index(the company’s financial performance improves), accounting for the total samples 60%; 6 sample firms get negative index(that is, the financial performance of firms to decline), accounting for 40% sample firms; which shows that more than half of sample listing Corporation getting significant improvement in the performance of the implementation of MBO ten years later. According to the basic principle of statistical inference, this paper obtains the final conclusion for the long-term impact of the implementation-- besides other impacts of financial performance, Chinese listing Corporation for the financial performance of MBO is positive, which can enhance the company’s financial performance. At the same time to strengthen the research force, this paper further does robustness test, and the test conclusion is consistent with the empirical conclusion. According to the empirical result, on the base of the establishment and improvement of enterprise’s sustainable healthy development of economic environment and good effective supervision mechanism, MBO has broad space for development in China, and China should encourage the implementation of MBO.