Empirical Study On Related Party Transaction Of Our Listed Companies In The Reverse Loss Year

Owing to the special listing mode of listed companies in our country which is characterized by the intricate affiliated party relation and related party transaction between the listed companies and their reorganizing parent company and the subsidiaries, the contribution made by the profit of related trade to the achievement of the listed company has been identified to be prominent. This phenomenon has become a crucial factor affecting the financial situation and management performance of the listed company. This article takes deficits annual related transaction which made by loss listed company as the research object. By doing academic and positive research, we expect to provide some empirical evidence for related research.This article firstly makes comments on the basic theories of the related trade. Then it analyzes the reason why a large amount of related trade of listed company is produced by using system economics and Game theory respectively, finding that the reluctant supervision of the minority stock holders and supervision department has facilitated the booming of related trade. Then it takes four aspects as to the related trade type, affiliated party property, take-place quarter and cash flow into statistical analysis. The author has studied the character of listed company in its annual related trade of making up deficits, and finds out that lose listed companies are inclined to make up deficits by utilizing related trade to get profit. In the second part of the article, by adopting the non-parameter examination Kruskal-Wallis H and Spearman order correlated examination method, the author conducts a positive research on lose listed companies' act of controlling profit through related trade in the year of turning loss-making into profitable. Studies have suggested that the more listed companies make their profit at the year of reversing loss, the more they rely on related trade; the longer the listed companies have been loss-making, the more they rely on related trade in the year of becoming profitable; the higher the liability ratio the year before reversing loss, the more the companies rely on related trade; the more the listed companies are loss-making, the less they rely on related trade. Researches indicate that in our country listed companies are prone to manipulate their profit through related trade in the year of reversing loss.By setting up Logistic regression model, the author studies the relationship between listed companies' related party transaction in the year of reversing...