Abstract:

Presently the management buyout (MBO), which is regarded as an effective means to resolve incentive aspects in state- owned enterprises, has been put into practice in some listed companies. However, the so-called MBOs in our country are actually different from those in Western countries. Although this kind of MBOs in our country can settle management incentive, it is unable to resolve management discipline, and therefore has resulted in inside deals between some listed companies and institutions and in some acts contrary to rules and regulations. Even though many things account for the situation, the difficulty of financing MBOs under our recent financial system is one of the important reasons. According to our present financial conditions, it might be a realistic choice to promote the MBO of division partaken by some specialized buyout institutions.

Key words: management buyout, management buyout of division, listed company