Related Party Transactions Of Listed Companies Of Earnings Management Research

Along with the unceasing development of capital market and the expansion of listed companies in China, the surplus management has become one of the topics to be discussed, settled and researched in the domain of financial and accounting. Transaction between the related parties, as a fundamental mode of surplus management, attracts more attention of administrators and plays a more important role. The excessive surplus management will inevitably generate cheat, trickery and opportunism which will definitely damage the economy. In China, quite a few of the listed companies are transformed from state-owned enterprises. The pattern of making the main body go on the market and the original enterprise transformed into the group has produced problems that the listed companies and the group companies will take advantage of surplus management to harm the benefit of medium and small-sized shareholders.Based on the basic theory on connection transaction surplus management, this essay defines the boundary between the connotation and the extension of connection transaction surplus management and analyzes its related concepts. The definition of connection transaction surplus management is as follows. It is a process through which the major shareholders of listed companies and the regulatory authority pursue their own benefits secretly, with the purpose of misleading finance information users, taking advantage of the present system flaw and the accounting policy choice to go round nimbly the accountant stipulation, structuring and revealing connection transaction. The management is divided into two categories, that is, the benefit input and the benefit output.In the analysis of the internal agent of connection transaction surplus management, this article discusses it from five aspects, namely, the fund raising agent, the debt contract agent, the political cost agent, the tax-evasion agent and the vicious market misleading agent. Besides, this article discusses the outside causes from the following aspects, such as accounting criterion, imbalance of accounting information, organizing mode of a company, the system to be listed, and settlement structure of a company. Among the multitudinous connection transaction surplus management methods, this article chooses ten main methods, through all of which we might see the basic mentality and the path taken by the listed company to operate their surplus by means of connection transaction. This essay takes many living examples of the listed to demonstrate all the methods.The purpose of carrying on the fundamental analysis of the connection transaction surplus management is to further regulate the surplus management, to put it into effect in the reasonable legitimate scope, and to control its excessive operation and negative effect on economy. On the basis of research, this article put forward way of judgment on the connection transaction surplus management of the listed companies, which will be carried out on the quota from six targets. In addition, the connection transaction surplus management can be recognized in the financial report. This article also proposed four specific perspectivesThis article puts forward six proposals on the standardization of connection transaction surplus management measures. They are as follows:1. to improve company treatment structure; 2. to improve achievement assessment method on the listed companies; 3. to improves accounting analysis method; 4.to reform the regulations about going on the market, the share matching, and revoking the privileges; 5. to strengthen occupational ethics education of the accounting personnel; 6. to establish legal proceeding system, and to enlarge law enforcement, and so on.