| In China, the marketing economy has made big progress, one enterprise often has many investors and related companies, thus the related party transactions appeared and has boomed between listed companies and their related parties. Related party transactions are helpful to expand financing method and develop strategy but the same time some related party transactions are unfair which have the symbol of unfair transaction and irregular accounting report and have caused great negative effects to marketing economy. Now related party transactions have become a topic of general interest. This thesis will discuss this problem from different quarters.In general,the listed companies in our country have representatives in both scope and profit, and the data is easy to get, so this thesis discusses related party transactions of listed companies.The thesis begins from the introduction of the situations in China, then analyzes the internal and external cause of related party transactions, based on which suggestions are offered to standardize the related party transactions from internal and external aspects, with the focus on the internal measure of optimizing the company structure.The thesis has four parts: The first part introduces briefly the concept of related party and related party transactions and sum up the situation of related party transactions in China. Related party transactions exist widespread in listed companies and most of them happen between parent company and subsidiary company or subsidiaries of one parent company. In recent years related party transactions have new features such as the arising of new means, the obviousness of profit control, the seriousness of funds occupation and guarantee. In general, there are 3 types of related party transactions: occupation of funds,reconstruction of capital and dependence of parent company and subsidiaries.Part two analyzes the influence of related party transactions and the causes of related party transactions. Related party transaction is neutral, it is helpful to get large-scale economy and to save transaction cost. But unfair related transactions of listed companies may bring great negative effect, such as damage the capability of operating independently of listed companies, do harm to the benefit of middle and small investors, strike the confidence of investors and destroy the finance market at last. Related party transaction is inevitable but in China there are some particular causes: One is that the mechanism of the birth of listed companies. The reorganization of state owned companies to be listed leaves many contact between listed company and parent company, thus the related party is inevitable. The parent company treats the listed company as the one belonging to it and intervenes the operation of the listed company by occupying the funds of listed company freely, appointing managing executives, providing guarantee for them and controlling the activities of listed company with their advantage of share and administrative intervene, all this will result in unfair related party transactions. The next is the imperfect of the enterprise administering structure, independent director and the supervisory board have not played a positive role at all and formed the situation of interior control and key control, the related party transactions are difficult to supervise. The third is the improper target of securities regulatory, especially in the scrip issue, ST system and quit system which focus only on profit target and promote the listed companies to control profit with related party transactions. The fourth is that the improper of the laws, which lacks the strength to ensure regulatory rules being implemented andlacks the relief laws.Part three discuss the external measures to regular related party transactions, including improve accounting norms so that it will be impossible to control profit by unfair related party transactions. The most often reason that listed companies hold related party transactions is to control profit, the... |
PDF Full Text Request