On The Issue Of Chinese Listed Corporation's Connected Transaction

The securities market is a vital part of the contemporary economy and an important tool that makes 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. However, connected transaction always changes earnings information apparently. But it is an objective action for companies, and it can't be avoided. So we must regulate connected transaction of the listed corporation to exploit the favorable conditions and avoid unfavorable ones.This thesis thoroughly studies connected transaction of the listed corporation. The thesis contains three sections. Section I introduces the general situation. First, it discusses the definitions and characteristics of the listed corporation's connected transaction. Second, it explains that the formation of connected transaction is objective. It has advantages and disadvantages. Third, this part introduces the accounting rules. Section II analyses the development of Chinese listed corporation's connected transaction, including in the early stage and in the past few years. Thenthis section discusses the types of unequal connected transactions, and gives a proof by statistical analysis. This part also discloses the reasons and the shortness of connected transactions. Section III is how to regulate connected transaction of the listed corporation. This section advances some countermeasures and suggestions from accounting rules and supervision system.