Related Party Transactions Of The Split Share Structure Reform And Standardize Research

With the completion of reform of non-tradable shares, the capital market of our country will enter the quick development period and will gradually transit to sophisticated capital market. However, the Chinese capital market rises late, and is in the transition period, this kind of "Emerging +Transition" economic model determines the specificity of our country's securities market development, and inadaptability of transition with the international market. Reform of non-tradable shares is undoubtedly a historic reconstruction for foundation of the China's securities market, which has a profound impact on behavior pattern, monitoring systems and the operation of capital markets and the market operation. The protection of investors shall be launched together with the reform of non-tradable share, so the healthy and orderly development of capital market can be maintained.It is well-known that, accompanied with the development of securities market, related relationships and related transactions emerge in our country. Because our country's market mechanism and governance structure of listed companies are imperfect, the congenital lack existed, unfair related transactions of listed companies is an inevitable result of development of the securities market. Regulation on related transactions has been the focus of our country's regulatory authorities for a long time, at the beginning the Accounting Standard for Business Enterprises - Relationship between Related Parties and Disclosure of its Transactions was issued in May 1997, and then a series of policies and regulations including Stock Listing Rules, Provisional Regulations on Sale of Assets between Related Parties and Other Relevant Accounting Treatment Issues, Accounting Standard for Business Enterprises No. 36 - Disclosure of Related Parties were enacted. Many scholars had done many researches on our country, but such study on our country's listed companies related transactions centralized in non-trading shares time. The author tried to use the listed associated transaction data to analyze the current status, characteristics, purpose and motivation of listed companies related transactions after reform of non-trading shares, and then proposed some countermeasures and suggestions on how to regulate related transactions.Firstly, this Article explained the relevant knowledge and related transactions concept of reform of non-trading shares, clarified the relationship between the related parties and definition standard of related transactions, and analyzed the nature classification and transaction characteristics of related transactions. Secondly, this Paper conducted classified statistics of Shanghai A shares related transactions during the years of 2002-2007 through Guotaian Service Center database (http://www. gtarsc .com), and analyzed the current status of our country's related transactions, and conducted further and profound analysis to intrinsic motivation and purpose of related transaction . We found after study that after reform of non-trading shares, the rapid increase in related transactions showed the increasing dependence of listed companies on the related parties compared with that before reform of non-trading shares; because of the strengthening of securities supervision, profit transfer in relate transactions showed a new feature that is more unconscious behavior to transfer profit; Inside Control phenomenon will be even more serious, equity motivation mechanism will facilitate short-term behavior and financial fraud of senior managers; if we do not monitor and study this as soon as possible, it will cause significant harm to our country's a large number of small and medium-sized investors, thus affecting the reform and capital market development.In this paper, the author proposes his advice about how to deal with change of related transactions after reform of non-trading shares, how to improve the corporate governance structure, how to give full play to the role of independent directors, and how to formulate Code of Conduct of Senior Managers, and puts forward specific measures for related transactions to further regulate reform of non-trading shares with respect to the accounting norms and how to regulate behavior of large shareholders.