Market Reaction Of "Tunneling" Related Party Transactions And Ownership Structure: Evidence From Chinese Listed Companies

In China, related parties and related party transactions (RPT) appears along with the development of stock market. RPT reduce transaction costs for enterprises by reducing transaction time, improving compliance rates, and other areas. However, meanwhile, the information asymmetry, Unreasonable company ownership structure, inadequate outside supervision, incomplete relevant legal system, all the objective unfairness violates the fire principle of market transactions, which may disrupt the rational allocation of market resources, and reduce economic efficiency.In recent years, listed companies use various means to do RPT for a variety of motives, and RPT seems to get worse and worse. Part of controlling shareholders violated benefits of small and middle shareholders and creditors by "Tunneling" RPT. The market order is disrupted. It is not conductive to China stock market's healthy development. Therefore, listed companies RPT are attracting general public and government's concern more and more. In China, RPT present widely in listed company's daily operational activities. The basic reason of its formation contains both listing processes reasons and post-listing reasons. This thesis mainly analyzes the impaction factors of "emptying" transaction-related from the corporate governance structure angle.The thesis first comments on the basic theory and related research development profile of RPT, and then analyzed probable impact factors of RPT, especially "Tunneling" RPT listed companies' shareholding structure. Then, use CAR and Regression Analysis to study A share market's reaction to RPT, and analyzed factors in shareholding structure which impacts "Tunneling" RPT.Through empirical studies, the thesis reveals that the market can respond fully to the RPT disclosure. And to some extent, can determine the "Tunneling" RPT, and be pointed to the bad news. Stock structural of listed companies have a great impact on "Tunneling" RPT market response. The more irrational the shareholding structure is, the lower the governance level is, the more profound the "Tunneling" RPT is, the more intense the market reaction is, and the more the share price falls.