A Research On The Influence Of The Scale Of Related Party Transactions By Shareholding Structure Of Listed Company

Related party transactions have been a phenomenon abound in China’s capital market,and also be the concern of the academics and practitioners. Scholars work on the related partytransactions of listed companies from different perspective. Including related partytransactions and corporate governance, related party transactions and earnings management,related party transactions and corporate performance, etc. Scholars focus on how to improvethe internal governance structure of listed companies for the regulation of related partytransactions. Many scholars have done the research on how to regulate related partytransactions from the perspective of internal governance structure, including ownershipstructure, independent directors, board of supervisors, and so many angles. In this paper, theresearch starts from the basic mechanisms that affect the company’s internal governancestructure-the ownership structure, combine with major events-the split share structure reformin China’s capital market in recent years, to explore the new characteristics of the ownershipstructure of the listed companies after the split share structure reform, and how these newchanges will affect the related party transactions of listed companies, and then given to how tofurther improve the equity structure of listed companies to regulate related party transactionsof listed companies.This article selects the data of A-share listed company in Shenzhen Stock Exchange in2010, excluding the financial sector listed company, ST company and the company ofincomplete data, a total of652samples. This article take the size of related party transactionsas the dependent variable, take state-owned shareholders, institutional investor’ ownership,internal shareholding ratio, ownership concentration, the equity balance degree as theindependent variables, take company size, assets and liabilities rate as control variables. Thisarticle take normality test, descriptive statistical analysis, correlation analysis between thevariables, multiple linear analysis of the independent variables, multiple linear regressionanalysis, and goodness of fit test, and the predictive capability of the model is in about62%.The empirical results show that the stake of state-owned shareholders, institutionalinvestor’ ownership, ownership concentration, the equity balance degree, company size, assetsand liabilities rate would produce significant effects on the size of related party transactions.The regression coefficients of the stake of state-owned shareholders, institutional investor’ownership, ownership concentration, company size, assets and liabilities rate are positive,indicating that these factors would have a significant positive effect on the size of relatedparty transactions. The regression coefficient of equity balance degree is negative, indicating that this factor would have a significant negative effect on the size of related partytransactions. The empirical results also show that the internal shareholding ratio had nosignificant effect on the size of related party transactions.