The Empirical Research Between Affiliated Transactions And Financial Crisis

Modern enterprise system request to establish highly separation of company governance mechanism.Related transactions at this time become used to the important method for shareholders and management, and along with the game content and renovates ceaselessly emerge a variety of related transaction form.Associated trade is a kind of common phenomenon, belong to neuter economic category, is accompanied by multinational companies, the mother of the company is widely used to fulfill. The connection transaction is to belong to the category of neutral, because if the enterprise in the open, fair and just under the principle of implementation, it can reduce the cost of trade between enterprises, including search cost, negotiation cost, help the listed company to make full use of the internal market resources deployment, make the operation efficiency be improved, is inevitable the normal behavior in the market economy. If, on the other hand, the listed company used association trade to adjust the surplus public statements information, reduce the authenticity of the accounting statements, reduce information disclosure statements of credibility, it would be hurt the medium and small shareholders or any other interested person’s legitimate rights and interests. So, to regulate the connected transactions in China for the listed company in relation to trade business openness, fairness and justice, provide valuable information to the investors and creditors to make investment decision has a profound social significance and economic significance.Related transactions have an important influence for the listed company’s health, In recent years, with the deepening of the research of the related transaction, the government supervision departments have started paying close attention to the related transaction behavior. The ministry of finance and the China securities regulatory commission and Shenzhen stock exchange are already have issued a series of measures to strengthen the supervision of the related transactions from all aspects. After20years of development, although the relevant departments in the market construction at the influence of paying attention to the related transactions, and successively promulgated a series of related laws and regulations. Such as "the sell assets between associates and other relevant accounting issues provisional regulations ","the accounting standards for enterprises no.36-the affiliated party transactions disclosure" and so on, and the relevant related transactions in the laws and regulations are gradually perfect, to better in the clear relationship between connected parties and promote associated trade fair pricing, perfect transaction procedures and improve associated related transaction information disclosure quality, but because the governance of listed company there are congenital deficiency, the connection transaction still more widespread phenomenon and hard to avoid. And by comparing foreign associated business regulation, we find that, our country related trading regulation legislation is low, the responsibility system is not perfect, and there are many legal conflicts, and at the same time, the information disclosure system still needs to improve.The purpose of this study aims to study the influence between the listed company connected transactions and occurrence probability of financial crisis, further analysis to know if many related transactions is accelerated the happening of the financial crisis, hoping to have certain theoretical and practical significance to regulate capital markets, protect investor, optimize enterprise group company management, promoting the healthy development of the listed company.This paper is divided into the following five parts, each part of the main contents are as follows:Chapterl:introduction. This chapter will explain this paper brief background and research significance, the research contents, thought and the frame, the innovation points, etc. initial analysis of the influence of on the listed company of financial crisis and connected transactions, and with our special conditions as far as possible, in our country the corporate governance structure is the system of the special background needs special consideration and careful study.Chapter2:review. This chapter will explain several key concepts, respectively review the connected transactions and the basic theory of the financial crisis, finally to review in recent ten years many academic points for detailed lists and analyzes, from the existing results in trying to look for writing ideas and methods for this paper. This paper wills also classified listed companies connected transactions, associated guarantee mortgage, buy associated with asset exchange, money lending association equity transaction and other claims. This paper mainly analyzed three trading behavior make the influence of financial crisis. Based on this, study the relationship between listed company connected transactions and financial crisis, this paper expounds what is the theoretical basis of the empirical study, laid the literatures in the next step for empirical research paper.Chapter3:theoretical basis. This chapter wills explain the relevant theoretical basis of emergence and development of the listed company to connected transactions, and analyses the mutual relationship between the connected transactions and financial crisis, laid a theoretical foundation for the next step for empirical research paper.Chapter4:descriptive statistics and empirical research. This chapter of this paper proposed hypotheses, expounds how to select the variables and sample data, and the construction of the empirical model. Select the listed companies in China as the research sample data, the design gives be explained variables and explain the research model variable. Through the sample selection, study design model, using the optimized process data to study the influence of financial crisis and connected transactions, and to return to the analysis, find out the answer to the assumption that can support in this paper.Chapter5:research conclusions and recommendations. According to above a few chapters of the empirical test and data analysis, this paper will put forward in the last chapter research conclusion:the interests output type of connected transactions increase the probability of occurrence in a financial crisis; The listed company to provide the guarantee of the total amount of the assets of the business, the higher the ratio, the greater the amount of equity transfer, the more likely the listed company in the financial crisis.In this paper, we make comprehensive analysis the relationship between the listed company associated trade and financial crisis, the study highlights the innovation:(1) through the literature review and analysis found that former study on the relationship of listed company affiliate transaction and financial crisis areas less. Based on the phenomenon of economic reality of observation and analysis found that, between cause and mechanism of action is related to exist, so will the two problems are combined to form the unique angle of view.(2) For the related transaction problem, limited to the concept of the previous general define, and not extended to the connotation of the connection transaction. This paper will further distinguish the connection transaction, and focuses on three major transaction types of the connection transaction, this in a previous study has not appeared. This classification provides a basis for further research.(3) This article chooses because of financial performance reasons be special treatment (ST) of the listed company as a financial crisis enterprise samples, and select the other financial normal group listed company as comparing samples, so as to dilute the sample data, lead to the research findings deviation, this paper adopted the form of matching samples. In addition, due to the listed company is ST treatment must be listed companies for three audited accounting year net profit are negative, so this paper also studied2007,2008,2009years of the company, in order to more detailed study the influence of associated business and financial crisis.This study have many shortcomings:first, due to the difficulties of the data acquisition, and by using the manual in the process of collecting the unavoidably exists error; At the same time the window involves only2007,2008, and2009period is shorter, may lead to some extent model in the prediction error; Second, this paper selects was "ST" of the listed company as the samples object, the small sample size; Third, this study is selected the financial index as a model of the index, did not consider the financial factors, pure through financial index of building up the variables by the financial crisis warning model to determine, easy to cause the prediction of the one-sided.