Listed Companies In China Related Transactions To Manipulate Profit Research

Related party relations and transactions occurring as the system of multinational corporations and parent-subsidiary companies are widely used in the world. Related transactions are very common among listed companies in China. Belonging to neutrally economic concept, related transactions are inevitably right action in market economy under the principles of openness, fairness and justice. Related transactions occur just among particular parties. So without proper regulating measures, related parties and listed companies tend to distort trade condition in order to transfer profit and seek some unjustified rights, thus causing some unfair related transactions. The transactions invade legal rights and interests of companies, middle-small shareholders and other concerned parties. It is of great realistic significance to study and regulate related transactions of listed companies. Therefore, it is necessary to regulate this problem further.Starting with the general introduction of connected contractions and profit manipulation, the author clarified the definitions of related party relationships and connected contractions and analyzed the nature and effect of connected contractions. At the same time, the author also gave the definition of profit manipulation and the relationship between connected contractions and profit manipulationThen from the general trend of connected contractions in our listed companies, the types and consequents of profit manipulation by means of connected contractions, the author sketched the condition of profit manipulation by means of connected contractions in our listed companies. In the thesis, the author had a thorough analysis of the causes of profit manipulation by means of connected contractions in our listed companies from inner motives and outside causes. As far as the developing trend of connected contractions in China is concerned, this thesis put forward some relevant policies and suggestions including the following aspects: to improve corporate governance, to perfect the disclosure system of connected contractions information and to protect the mid-small shareholders and to improve the listing mode.