Study Of The Legal Issues Associated With Transaction Information Disclosure Of Listed Companies

Affiliated transaction is a two-edged sword. On the one hand it can lower transaction costs and risks and improve an enterprise's competitive power in market. On the other hand it brings about many problems. Nowadays affiliated transaction has become an important way for listed companies to manipulate profits in securities market, and thus does great harm to the nation,non-affiliated shareholders,creditors and listed companies. So how to regulate affiliated transaction has become a hot issue in securities market. Information disclosure is the basic form for a listed company to communicate with the public and also the most effective means to protect investors' legitimate rights and interests. And it has been proved that the abuses of affiliated transaction always result from not observing the rules of information disclosure. Therefore, information disclosure plays a very important role in guarding against the abuses of affiliated transaction and it's the very way to develop the active functions of affiliated transaction.First the concept of affiliated transaction is discussed and the idea that connected person is the basis to judge an affiliated transaction is put forward. Next the legal characteristics and classification of affiliated transaction are mentioned. Then both advantages and disadvantages of affiliated transaction are analyzed. And it is pointed out that due to the existence of its advantages and disadvantages, it's necessary for a nation to regulate affiliated transaction. In the following chapter the regulations of affiliated transaction in some developed countries and regions are introduced. In this part the requirement and standard for information disclosure in American law and Hong kong Stock Exchange are analyzed. And the fundamental values of affiliated transaction, justice and efficiency, are explored.Hereinafter the present conditions and problems of information disclosure in affiliated transaction in China are analyzed. And the requirement and standard for information disclosure in accounting standard of China's Ministry of Finance and securities law,regulations and rules are introduced. In addition, the defects in those rules are pointed out. In the last chapter based on the analysis above, some concrete measures to strengthen and improve the legal system of information disclosure in affiliated transaction are put forward.