China's Listed Companies Related Party Transactions

The security market is a vital part of the contemporary economy and an important tool that makes the market economy collocate the social resources reasonably. The listed companies, which are the model forms of the company system, play a critical role in the security market and the finance information of listed companies is a important factor which influences the stock price. However, the related party transaction is an objective action of companies and its impact on social economy has two sides. So we must regulate the related party transaction to exploit the favorable function and avoid the unfavorable effect.This thesis studies the related party transaction of the listed companies. It contains four sections. Section 1 introduces the basics of the related party transaction, including basic concepts, the types of the related party relations, the analysis in economics and the origin of its regulation. Section 2 develops the internal motivations, the exterior reasons and the forms of the related party transaction and point out the prominent problems, viz. the listed companies' capital being misappropriated and the guaranty of the listed companies for the related parties. Section 3 analyses two related accounting regulations, including the related accounting standard and the provisional rule. Section 4 advances the countermeasures to regulate the related party transactions, including to perfect the supervising systems and the corporation law and the security law of China. And to perfect the supervising systems involves to consummate the corporation governance, the intermediary institutions and the security governance organ.