Research On Supervision Countermeasures Of Related Party Transactions In Listed Companies

Affiliated transactions is unavoidable during the development of capital market, it is neutral as one of transaction sorts. On the one hand, affiliated transactions has certain advantages in saving transaction costs and reducing the risk compared to the transaction in a separate market. In the enterprise group context, affiliated transactions is a better form of trading for listed companies achieving maximum benefits. On the other hand, despite the emphasis on equality trading, affiliated transactions’ concealment and flexibility make it easily Become a means of enterprise groups "whitewash profit" or "tunneling" Therefore, in order to regulate affiliated transactions, avoiding becoming a means of violating the interests of others, China has established a relatively complete regulation system of affiliated transactions. However, In recent years, the violations occurred in China’s listed companies still mostly has a direct or indirect contact with the affiliated transaction, which indicating that our regulation of affiliated transactions is still inadequate. Thus, under the background of the presence of a large number of enterprise group in our country,in order to maintain the normal operation of the capital market and avoid controlling shareholders using affiliated transactions to damage the interests of small investors, strengthening the supervision of affiliated transactions and improving the regulatory system is important.The article summarizes the research background, significance, methods, content framework and relative innovation firstly, describing the basic profile and purpose.Secondly, the article summarizes the domestic and foreign scholars’ research affiliated transactions, defines the basic concepts of affiliated transactions, and explains the basic theory from the principal-agent theory, asymmetric information theory and transaction cost theory. Then, in the third part, the article analyzes the current situation of China’s listed companies’ affiliated transactions and its regulation, finds the lack of affiliated transactions regulation currently still present by comparing with the representative regulatory measures in developed areas of domestic and foreign. In the fourth part, through analyzing the illegal affiliated transactions of Zixin Pharmaceutical and its specific behaviors and consequences,the article points out the lack of regulation in the course of its violation. Finally, combined with the lack of regulation in affiliated transactions aforementioned, the article proposes some measures to perfect our regulation of affiliated transactions.