MBO Performance Study of Listed Companies in China Based on Factor Analysis

In order to evaluate the MBO short-term performance and long-term performance, by virtue of 36 listed company samples which were buy-outed by management among 1997-2004, an empirical study was conducted based on factor analysis and matching T test. Empirical results showed that there was obvious improvement on the enterprise performance from overall view. The common factors such as risk control factor, profitability factor, growth ability factor and management ability factor all presented the situation of spiral rise, so MBO can be considered to improve enterprise's financial performance in an effective way.