The Study Of The Problem In The Internal Control Of Related Party Transactions Of China's Listed Companies

Related party transactions are widespread in the Listed Companies, the parties of the related party transactions use the internal structure of the group to interoperate and achieve scale effect,related party transactions can reduce transaction costs, The financial and human resources focus on to the most efficient sectors, thereby enhancing overall economic efficiency, this flow and concentration is bound to bring some transfer of benefits, which for the overall development of enterprise groups has many benefits.However, controlling shareholders of listed companies related transactions use non-profit fair delivery to seize the benefits of small shareholders, damage the lawful rights and interests of minority shareholders, distort resource allocation, impact of capital market development.After the non-tradable shares can circulate in the stock market, stock prices become the controlling shareholder of the market constraints, improve company profits, the pursuit of long-term gains will become the controlling shareholder of the main objectives,controlling shareholders may be more focus on pursuiting short-term capital gains, the use of absolute control of their own cosmetic company's financial statements advantage, driving up shares in order to obtain a higher flow of the right to sell its holdings of stock prices. controlling shareholders of listed companies to seize the benefits of small shareholders, will not disappeared. after split share structure reform.From now on,regulators have issued a series of regulatory laws, on related party transactions of listed companies.Because of the limitations of the external regulation, it can not effectively prevent the occurrence of unfair related party transactions. FromJanuary to September in 2009,STdongsheng,STlianyou,jiahegufe,tianfuredian,Stfangyuan and so on were condemned by shenzhen and shanghai stock exchange because of related party transactions.the cause of related party transactions is not a single, regulatory measurest is not a single,too.Regulate related party transactions require Multi-party cooperation, in order to achieve the desired effect.external factors play a role by Internal factors, so, need to control the related party transactions from the Companies that it can ensure the fairness of related party transactions from the root.How to strengthen and improve our internal control mechanism of listed companies maintain the credibility of the securities market, promote the healthy development of securities market, protect of the rights of minority shareholders, to ensure the security of state property, regulating listed companies in China to the affiliated party transactions of the internal control of accounting theory and practice is of great significance.This paper will be divided into four parts to study the problem of the related party transactions of internal control in China's listed companies. Structure as follows:The first part mainly introduces the research background and significance of this paper and the research status domestic and overseas about this problem.also explain the research method about this paper.The second part mainly elaborate the related theory of the internal control and related transection, about the internal control mainly about the origin and development of our country's internal control and how the basic rules is formed are introduced in this paper,the related transactions were introduced., primarily from the guideline provisions.The third part, on the basis of the overview about related party transactions, elaborated on related party transactions of listed companies in the current situationandthe main form of the related party transactions and the existing problems are stated in detail.The fourth part, On the part of the related party transactions problems can lead to the necessity of the internal control of related party transactions in our country. the basic contents of the internal control is expounded, some problems should be solved urgently about the the internal control of related party transactions is also been told in this part. and put forward some Suggestions and ideas about the problem in the internal control of related party transactions.Then get some conclusions at he final about this paper.