The Research On Performance Of Management Buyout Of Shuanghui

Management buyout firstly appeared in 1970s. MBO became a very focusing buyout in Western countries with the growing of financial markets in Europe and the United States. It provided a significant influence on the changes of Western countries’ corporate structure and governance. MBO became a quite mature leverage buyout. And it also provided an alternative way to acquire state-owned shares. In 1990s, with the spread of the innovation of Chinese state-owned corporation, MBO began to impress its influence in many entities.As a kind of leverage buyout, MBO can combine the operation and the ownership, helping the changing role of manager to owner. It also provides chances for managers to show their competence ability in the operations. It can comparably reduce the agency costs, find the potential of the company, and improve the performance, effectiveness and efficiency of the corporation. But many issues could be able to occur due to MBO. State assets may loss, the source of the consideration could be illegal and disclosure, stakeholders’interest could be damaged. To discuss and revalue whether MBO has a positive impact on the performance of the company, the article choose Shuanghui as the study object.The article firstly introduced the foreign study of MBO theories, which are agency cost theory, wealthy transfer theory and entrepreneurial ability theory. By summarizing the foreign empirical research on the performance of MBO, the article discussed the wealth effect of MBO. Later, the article introduced the research process of domestic study of MBO, and summarized the attitudes of domestic scholar towards MBO in China. Finally the changes of policies and regulations of MBO are provided.Using the MBO of Shuanghui, the article introduces the process of the MBO. By analysis the assets, debts, profits, dividend policy and the disclosure of the accounting data, the changes of performances of Shuanghui before and after MBO are identified. The summary ofadvantages and disadvantages of Shuanghui’s MBO is accomplished. Also the advices of the government management of MBO are provided.