Related Party Transactions Of Listed Companies In China Transfer Pricing Issues

Related party transactions are prevalent and frequently occurring in the modern society. Its economic significance, the transactions between the listed companies and related parties, as a contractual arrangements, the initial aim is to save transaction costs, access to economies of scale in order to achieve business maximize corporate interests, while overcoming the information asymmetry arising cause to market risk, improve operating efficiency. Therefore, in this sense, the related-party transactions is a measure to deal with the enterprise market mechanism defects, it is not only reasonable but necessary. Related party transactions itself is neutral, but it is also different from the behavior of market transactions, its uniqueness lies in the lack of a impartial field. The related parties in order to achieve a certain purpose, they may not be followed in the principle of fair competition in the market, but rather use their control or significant influence, so that the transaction based on non-fair, the outcome of a transaction may damage the interests of other stakeholders. As the related party transactions are different from the behavior of normal market transactions, the transaction process with the occult, the price formation is not constrain by the market supply and demand, with subjectivity, service for the purpose of both sides. The transfer pricing is a means to achieve the purpose of related party transactions, but also the key to reduce the transaction costs. An important criterion to determine related party transactions whether or not for the fair is how the transfer prices are determined. Therefore, it is very necessary and meaningful to the study the transfer pricing, standardize the related party transactions, consummate market mechanisms.Studies on the related party transactions, in developed countries have already formed an important issue, and made a number of research results, and our scholars study was relatively small.The Organization for Economic Cooperation and Development (OECD) as early as in 1979 promulgated the "Transfer pricing and multinational corporations," was followed by continuous modification and improvement, provide for the transfer pricing principles and methods. The U.S.and international accounting standards, have also conducted a series of studies and norms in transfer pricing. From 1997 China has the first concrete guidelines for "Enterprise Accounting Standards-related party relationships and transactions disclosed," and then issued a series of more detailed guidelines to regulate the continuous manipulation of interest means, can be said that the guidelines associated with trading profits generation and manipulation methods, the game is a dynamic process, it was precisely this game has pushed China to form a relatively complete set of accounting system to restrict the listed companies behaviors.This article is concentrate on transfer pricing matters to research the securities market, hoping to guiding the transfer pricing and exerting its positive function. The idea of a study is according to the "theory-Realistic situation Analysis-Causation Analysis-the system perfect".First of all, it summarized related party transactions and transfer pricing, for an overview of the definition of related party transactions and its characteristics, explain the significance of transfer pricing, classification and characteristics,and the factors affecting pricing. Then, analyze the status quo and problems of transfer pricing in China's listed companies, carried out quantitative analysis of the relationship between the performance evaluation and related party transactions, Second, using statistical sampling method to outline the status quo of China's listed companies, transfer pricing and its evaluation, then analyze the reasons. Third, through analyze the reporting information, it generalize China's listed companies trading transfer pricing disclosure requirements and the status quo, and analyze problems. Finally, put forward a viable proposal from the pricing policies, related accounting standards, supervise,as well as transfer pricing regulation in such areas.