A theoretical study on the magnetoacoustic signal generation with magnetic induction and its applications to electrical conductivity reconstruction is conducted. An object with a concentric cylindrical geometry is located in a static magnetic field and a pulsed magnetic field. Driven by Lorentz force generated by the static magnetic field, the magnetically induced eddy current produces acoustic vibration and the propagated sound wave is received by a transducer around the object to reconstruct the corresponding electrical conductivity distribution of the object. A theory on the magnetoacoustic waveform generation for a circular symmetric model is provided as a forward problem. The explicit formulae and quantitative algorithm for the electrical conductivity reconstruction are then presented as an inverse problem. Computer simulations were conducted to test the proposed theory and assess the performance of the inverse algorithms for a multi-layer cylindrical model. The present simulation results confirm the validity of the proposed theory and suggest the feasibility of reconstructing electrical conductivity distribution based on the proposed theory on the magnetoacoustic signal generation with magnetic induction.