Study On Interest Transfer Behavior Of The Listed Companies In China

Controlling Shareholders make the listed companies obtain financing from capital market based on earnings management. At the same time, controlling shareholders expropriate firm resources through funds embezzlement, related party transaction and high Dividend. Thus minority shareholders are plundered and the capital market is harmed in China badly. By reviewing the current researches on this field both at home and abroad, the dissertation makes a detailed and systematic study on the interest transfer behavior of the list companies in China.Firstly, foundation, means, process and market reaction of the interest transfer are analyzed based on expounding its meaning and mechanism. Thus the theory system of this dissertation is established.Secondly, the list companies are disparted several groups Depending on their distributing characteristic of ROE (Rate of Return on Common Stockholders' Equity). Earnings management behavior is studies of each group. Because the companies always avoid reporting loss and earnings declines, the list companies are disassembled different property parts of each group according earnings targets (zero earning and last fiscal year's earnings) to study Earnings management behavior deeply. Then regression models and interactive regression models are established base on earnings targets in which large Shareholders' proportion of stock, out director dummy variable and "ten big audit committee" dummy variable are considered. So the affecting and restricting factors of earnings management are validated.Thirdly, It is studied the interest transfer behavior of Jidongshuini and found that it manages earnings around shares-rationing polices and its controlling shareholders expropriate firm resources through funds embezzlement, related party transaction and high Dividend. With the stronger law, Jidongshini changes its meanings of interest transfer. The effects of audit and out directors are discussed at the same time. It is point out that the law condition in our country should be improved more.Fourthly, the market reactions of six sorts of related party transaction are analyzed.