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The Empirical Study On Influence Of External Governance Environment Upon Related Party Transaction

Posted on:2012-05-18Degree:MasterType:Thesis
Country:ChinaCandidate:P X GuoFull Text:PDF
GTID:2219330368487187Subject:Accounting
Abstract/Summary:PDF Full Text Request
Related party transactions, as an enterprise group internal allocation of resources between members of a kind of behavior, have two aspects features .First, it reduce transaction costs. And in the meanwhile, the controlling shareholder may take advantage of Related Party Transactions to expropriate the firms'resources. So it has always been a focus of attention of the academic and operating.This article mainly through the analysis and empirical analyses explains why Related Party Transactions is associated. To study china's Related Party Transactions, we found the reasons from current economic roots and institutional aspects. From economic causes, the business have its necessity and advantage, it can reduce transaction costs. But our country has its particularity, and it is closely related to the transition stage of our country. Through the research of 2005 - 2007 listed company, combined with the present economic stage and the enterprise group and external environment, it explained the relation between trade controlling shareholders and Related Party Transactions. We found that eternal environment better, it feature more commercialization, legalization, financialization level and lower levels of government intervention, and Related Party Transactions in the areas are less. It also found that in the same area controlling shareholder of the property has an important impact on the Related Party Transactions. Compare with non state-controlled listed company, a state-controlled listed companies are more likely to establish a link between trades listed. This is probably the state-owned enterprises are more susceptible to pay the government policy burden.In the last of the work, according to the theories and empirical analyses, we suggest that it must improve Related party transactions from policy. Firstly it must improve regional economic development and establish healthy external environment and create conditions for the development of the enterprises. Secondly it must further deepen Reform of state-owned enterprises and reduce government intervention the market. Finally, it has improved some other aspects, such as to improve the company governance and strengthen supervision and information disclosed and made improvement measures and so on.
Keywords/Search Tags:Related Party Transactions, Areas Governance, Controlling Shareholders
PDF Full Text Request
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