Research On Normalizing Related Transactions Of The Chinese Listed Corporations

According to Chinese enterprises accounting standards, the related party transaction is an event whereby a transfer of resources or obligations takes place between related parties, regardless of whether a price is charged.List corportations are the best in all corportations.They Have some representation.So study the related party transaction in example of the listed corporations.Initially,the transactions related to the emergence of the social division of labor. The aim is to reduce transaction costs. But with the continuous development of society and for own interests of enterprises,the related party transactions were use to achieve their purposes. The related party transaction is a neutral concept.It is divided as fair transaction and unfair transaction.Laws and regulations are used to regulate the ralated transactions effectively.China's securities market started lately, Most listed corporations of the securities market are formered from state-owned enterprises.There are inextricable links in listed corporations and their parent corporations. The related party transactions between them are particularly prominent. Currently regulatory departments have promulgated a series of laws, rules, and regulations.But these can't effectively curb unfair related party transaction.Many listed corporations used the related party transactions to operate profit. These already destroyed healthy development of the securities market seriously,and harmed the investors and creditors'legitimate rights and interests. Therefore we must strengthen the standard to the related party transaction and propose further measures to regulate the related party transactions. The dissertation include several aspects as follows: introduction of this dissertation describes the backgrounds and significant meaning of the study on Related Party Transaction, laying foundation for the following analysis.The first part is introduction of this dissertation. In the part,the dissertation describes the backgrounds and significant meaning of the study on Related Party Transaction, laying foundation for the following analysis. In the second part, this dissertation defines the conception of Related Party and Related Party Transaction. According to the accounting standards of China and United States, Related Party are always the majority stockholder and top management of listed corporation; and Related Party Transaction is defined as the transactions of resource, labor or obligation between the listed corporation and its related parties.In the third part, this dissertation discussed The current situation of related party transaction and reasons of related party transaction.To pursuit profit, the unfairness of transaction has been viewed in many cases. The specific ways of related party transaction are discussed in the practical listed cases in the later part. In this foundation, this dissertation explains the root causes why so many related party transactions happened.On the one hand, In the view of the corporation, pursuing profit is its nature, and the transaction between listed corporation and its related parties provide many ways to raise profits, which is not real, so the transactions are popular.On the other hand,flaw of accounting rules cause many unfair related party transactions.In the forth part, this dissertation explains how to keep the related party transaction fair. Many measures should made by regulatory authorities They are divided into two parts. On one hand, we should supplement accounting rules of the related party transaction. On the other hand, we should reinforce the internal and external supervision and restraining mechanism by establishing sound internal management structure, enhancing external supervision departments, such as the independent auditing executed by account norms.