An Analysis of the Insiders Control Problem in Management Buy-outs
Management buy-outs is a most direct way to solve the problem of internal incentive in companies,cuts down the principal-agent cost between company owners and managers, avoids the insiders control problem. But the management buy-outs which have been implemented or being implemented in our country mostly are not the thoroughly action, which cause the insiders control problem. The paper classifies the insiders control phenomenon in the management buy-outs firstly, then analyses the causes of insiders control, at last the paper provides some measures to solve the insiders control problem in management buy-outs.