Related Party Transactions Empirical Research And Regulatory System

Related party transactions suffer more and more of thoughtful of, because it has become the stumbling block of our capital market's development. To some extent related party transactions has become the pronoun of the listed company's income manipulation. This article investigated present condition of listed company and analyzed deep-seated reason that related party transactions exist, then we use empirical study to examine how the related party transactions influence listed company operation income and stock price. At last we discuss how to manage related party transactions in our capital market. Chapter 1 primarily discussed the related party transaction's basic concept,present condition and reason that related party transactions produced. Related party transaction is the conducts the related party transfer resources and duty each other in spite of payment, it has positive aspect and negative aspect. Related party transactions in enterprise group can lower transaction cost and enhance operation efficiency. Through inner coordination one enterprise group can formulate market dominance. In some country related party transactions can escape tax legally. But in our country related party transactions make enterprise evaluation lose the objective foundation, it give related party chance to plunder listed company's wealth, at last it make listed company lose ability to develop itself. From the view of related party transaction content, It can be divided into two kinds: benefits importation and benefits taking. Making use of statistics analysis we can discover related party transaction has two basic characteristics. One is its quantity is more and more, the other is its style is more than ever.From the view of the Reason that related party transaction produced, the current theories could not investigate related party transaction radically. We think the reason that related party transactions produced is based on follow ways:the particular factor in economic system transferring; illogically securities publishing system, the tools to manipulate stock price and looseness of management law.In Chapter 2, we use describing statistics and event study to examine influence that related party transactions bring. We discover that related party transaction influence company's net profit and EPS distinctly, but it did not occur to cash flowing. Through empirical study we find that related party transaction's information has been published illegally. Before information is published, some investors have known related party transaction inner information. Duo to above things social wealth has been distributed among investor unjustly.Based on above study, In Chapter 3 we have discussed related party transactions management method. We think current theory can not touch foundation of related party transaction. Only looking at this problem historically can we find perfect solution. At present we think that our country should take follow ways to manage related party transaction. First, we should better our security publishing system, including the IPO system and later security publishing system. Second, after studying maturemanagement system in developed country,we should prefect our "company law" and "security law". Third, our corporate governance can not copy other country mechanically, that is to say we should adjust it to our country's special situation. Furthermore we should rethink self-governed director's action, at present we can not depend on self-governed director excessively. At last as the primary management law of related party transactions, accounting standard should develop with times going on and adjust to our country special situation.