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|Title:||How leveraged buyout influences the competitiveness of state-owned firms|
|Source:||土木工程学报 (China civil engineering journal), Mar. 2003, v. 36, no. 3, p. 84-89, 104 How to cite?|
|Journal:||土木工程学报 (China civil engineering journal)|
To improve the competitiveness of state-owned firms in China is one of the most important aims of implementing reforms on Chinese economy. Recently a series of effective measures, such as merger, acquisition and transforming traditional state-owned firm to corporation, have been introduced to improve the competitiveness of the firms. Although leveraged buyout (LBO), a pattern of acquisition and restructuring, has been gradually used in practice, there are few previous studies investigating how LBO influences the competitiveness of state-owned firms. It is considered of good significance to scientifically recognize LBO’s impact on the competitiveness of state-owned firms. From the aspects of changing corporate governance structure and capital structure, this paper analyzed how LBO improves the competitiveness of state-owned firms. Focuses are given in examining the existing situation where government officials have the power to control the state-owned firms of China, but have no residual claims on the firms, and the irrationality of the performance valuation criteria of the management leads to poor incentive mechanism. LBO can change this by improving the ownership and incentive mechanism. At the same time, LBO can also strengthen the debt’ s motivation to managers and the tax shield effect to improve the competitiveness of the firms.
|Rights:||© 2003 中国学术期刊电子杂志出版社。本内容的使用仅限于教育、科研之目的。|
© 2003 China Academic Journal Electronic Publishing House. It is to be used strictly for educational and research purposes.
|Appears in Collections:||Journal/Magazine Article|
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