Research On Listed Companies Related-Party Transaction Internal Control In China

Affiliated party transactions of listed companies are transactions between listed company or its controlled subsidiaries and related parties. With the world economy and technology development, in a modern market economy life, it has become a often happen and widespread phenomenon that affiliated party transactions and the exchange of management experience can improve the performance of the company in intra-group. In the 1990s, with emergence of asset restructuring, the affiliated party transactions are rapidly spreading in China's listed companies. However, because of our country's listed companies on the stock market are made by the state-owned enterprises, the listed company and holding company and its subsidiaries exist countless connection, the problems of affiliated party transactions are particularly outstanding between them. The affiliated party transactions has become main means of fraud for many enterprises especially listed companies, even become listed companies to maintain its "shell" resources "life-saving straw." Such as Jinan QingQi, ST Monkey King, ST KangSai, Daqing Lianyi, 39 medicines, etc, they had brought serious negative effect to small and medium shareholders and creditors, and securities market. Therefore, how to strengthen and perfect the internal control mechanism of listed companies in China securities market, maintaining and promoting the reputation and normal healthy development of the securities market, regulating the affiliated party transactions of the internal control for China's listed companies have become inevitable problems for accounting theory and practice.In this paper, the author is in accordance with the questions; analyze problems and problem-solving ideas. First, the paper describes main theories and practices at home and abroad based on the connotation of internal control in related-party transactions; Secondly, from the special background of the affiliated party transactions of the listed companies in China, the author analyzes the existing problems and economic effect; Thirdly, the paper describes the necessity of internal control for problems of the affiliated party transactions, also analysis present situation and problems of the internal control in China; Finally, according to its internal control problems, the author has targeted the concrete measures and path selection from five aspects.