Research On Connected Transaction And Profit Manipulation Of Listed Companies

Under the circumstances that the development of Chinese securities market is not perfect yet, it is common to see highly concentrated ownership structure. Listed companies commonly using related party purchase and sale,associated capital lease, cost passed along, dividend distribution, capital transactions and other transactions related to manipulate profit, due to the disadvantages of listed company structure, corporate governance and external supervision, which caused huge loss for the overall interests of minority shareholders, creditors and the company’s, also with severely impair to Chinese securities market. Thus, it is urgent to solve this problem so that to protect the interests of minority shareholders and creditors, and promote the recovering of Chinese securities market order.In this study, we taking an example of M corporation for analysis then find out that: M has long-term manipulation associated with trading profits which indeed hazards the profits of minority shareholders,due to the disadvantages of listed company structure, corporate governance and external supervision. This matter reflect the universality of such manipulation. After these manipulations has been exposed, it has attracted widespread attention of the whole society. Thus, it is urgent to optimize company ownership structure, management structure and laws and regulations, such that to proceed restriction and supervision.The study has been divided into five parts:introduction, to introduce the study background and significance, while summarized the achievement what our ancients already got, and point out the research methods, creation and deficiency; second part is the analysis of related parties and related party transactions and profit manipulation, introduces the definitions of them, and describes the role of related party transactions, also points out the motivation and methods of trading profit manipulation. In the third part, we proceed analysis of means and causes of trading profit manipulation of M corporation. Next chapter, we proposes countermeasures to trading profit manipulation, from the angles of optimizing ownership and corporate governance structure, and strengthening of legal and regulatory. The fifth part is conclusion and outlook, summarized for the contents and prospected the future development.