Analysis On Affiliated Transaction In China Power Industry

The affiliated transaction has deeply economic roots. As a market behavior, affiliated transaction can lower the dealing cost and reduce operating risk, as well as decrease in-industry competition. Due to its positive influence, it has become one of the common tools for the multi-national and domestic corporations to enlarge the capital operation; however, affiliated transactions are carried out between the given affiliated parties and the relation is quite complicated and secluded, affiliated transactions are used by many multi-national and domestic corporations to obtain unmerited profits. Therefore, affiliated transaction has attracted the attention of the academia and the community for a long time. At present the research about the affiliated transactions from the angle of all listed company, mainly focuses on the fields of empirical analysis. Little attention is paid to given industry affiliated transaction.Firstly this thesis starts from the definition of the affiliated transaction and compares the determination of the affiliated relationship and transactions of the domestic and the international accounting standards which forms a general understanding about the contents. In 2nd chapter, the thesis explains the causes of affiliated transaction in 3 ways: transaction cost theory, property system theory and corporate governance theory to deepen understanding of affiliated transaction and discuss its positive and nagetive influence. In 3rd chapter, this thesis analyzes power industry listed company in descriptional way and classifies affiliated transaction parties. In 4th chapter, this thesis empirically analyzes power industry affiliated transaction. Firstly, it analyzes affiliated transaction's influence on market value. Secondly, it analyzes ownership structure's influence on affiliated transaction. Conclusion is below: power industry transaction have no influence on its market value, and have influence on ownership structure. High-concentrated ownership structure doesn't lead to affiliated transaction, however, it does provide opportunities for unfair affiliated transactions, which might leads to deterioration of listed company market value. Finally, this thesis concludes the analysis and points out the shortcomings.