Study Of Related Party Transactions Of Listed Companies In China

A related party transaction is an event whereby a transfer of resources or obligations takes place between related parties, regardless of whether a price is charged. Most of the listed corporations in China originally came from the State Owned Enterprises (SOEs), some of the quality assets of which were transferred to the listed corporations during their IPOs. So the remaining assets became their parent corporations, which held the dominant equities of the listed corporations. Because the listed corporations are almost controlled by their parent corporations, so many affiliated trades take place that related party transactions among listed companies become one of the crucial problems in recent years. A related party transaction is a kind of special economic activity. A normal related transaction could make the business scaling up, reducing the risk of transactions, lowering the transaction costs, and realizing the strategic objectives of the whole business group. But some of the listed companies make use of the malfeasance related transactions to manipulate the profits of their companies or invent the deceitful related transactions to jack up their stock prices in order to raising funds from the capital market, harming the interests of creditors and shareholders, and disturbing the order of the capital market. It is of great importance to reinforce the regulation of related transactions in order to protect the proper interests of investors, improve the efficiency of the capital market, and maintain its stability.This thesis thoroughly studies related transactions of the listed corporations in china. Based on a large scale of data and relevant regulating rules set down by the China Securities Regulatory Commission, it gives a focus on the characteristics of related transactions of listed corporations. Following the comparison of supervising and legal differences between China and developed countries, it points out that there ought to be many aspects of the regulation on related transactions need to be improved, such as the identification of related parties, the compulsory exposure of related transactions and the corporate governance problems. Combined with the main views of scholars at present, this thesis puts forward measures and suggestions on regulating related transactions of listed companies. First, it is necessary to improve the corporate...