Researse On Related Party Transaction And Its Disclosure

The securities market is a vital part of the contenporary ecotrmy and an important tool that make the market economy collocate the social resources reasonably. The listed companies, which are the model forms of the company system, play a critical role in the securities market More and more policies, codes and ordinances in the securities market directly or indirectly regard the accounting earnings as the assessing index. Therefore the listed companies' financial information, especially the accounting earnings, becomes the key factor that influences the price of stock and shares. Hcwever, related party transactions always change earnings information apparently. So the reality and validity of related party transactions is of vital importance for the investors and relative departments. It has direct connection with the benefits of the investor, healthy development of the securities market, and also connects with collocation about the social resources.Naradays the financial report's relative users, such as the securities investors, the finance credit departments, and the management departments of the state-owned assets, have all pay a close attention to the related party relationships and transactions of the listed companies'.My paper thoroughly studies Chinese listed companies' related party relationships and transactions. At first, it explains the reasons why these phenomena are existed, then it proposes that we should treat it in a neutral manner, and forbid it strictly whenever over used Secondly, my paper discusses the defination, motives, types and methods of the listed companies' related party relationships transactions in Chinese economic envirorment, and give a proof by statistical analysis My study indicates during past years related party relationships and transactions have existed universally, and even now in China securities market there are still many irregular behaviors, not only because the corporations fail to disclose them, but also because the regulatory departments can not completely supervise the listed companies' behavior. At last, in order to effectively disclose China present listed companies' related party relationships and transactions, my paper advances sane constructive countermeasures and advice It will become some practical reference to normalize the listed companies' behavior, and play an active part in prunoting the healthy of the China securities market,...