Research On Rules、Characteristics And Motivation Of Listed Companies’ Related Party Transaction In China

Because of the double features in positive and negative aspects, related party transaction hasbeen a hot issue in academic community. The positive side is that transaction between familiarrelated parties can reduce transaction costs and bring real benefits to both sides. The negativeside is that related party transaction provides a seeming legitimate mean to listed companies formanipulating profits、transferring assets、avoiding tax burden and so on. From the early researchliteratures we found, compared to western developed countries, the related party transactions oflisted companies in China showed more negative side, seriously affected the healthydevelopment of security market. Then what characteristics of listed companies’ related partytransaction in our country are, what are the motive that resulting in frequent occurrence of thetransaction and whether the policies、supervisions in China are perfect, these just the problemsthat the paper will study.This paper is on the basis of relevant studies and discusses the theoretical concepts of therelated party transactions firstly, mainly focus on expounding the similarities and differences ofthe transaction between our country and developed countries and expounding the regulatoryevolution. Secondly, through the statistical analysis of the Shanghai A-share listed companies’related party transaction data in2007-2010years, studying the specific characteristics and trendsof the transaction under the background of the economic crisis. Next, uses the relevant data of102Shanghai A-share listed companies in2010as the sample data, analyzing and testing therelated party transaction motivation empirically, through the establishment of multiple linearregression model and difference analysis system. The results show that: associated with buyingand selling goods, providing or receiving of services, guarantee and mortgages are the mostcommon types of related party transactions; listed companies’ related transaction behavior hascertain regional features in our country, better economic environment can reduce the relatedtransaction behavior; Extractive industry and other capital-intensive industries have the highestproportion of daily related party transactions; under the background of the economic crisis, therelated party transactions frequency of listed companies in China shows first decreased and thengrowth trend, finance and insurance industry was affected mostly by the crisis; the reasons offrequent related transaction behavior of listed companies in China are the motivations of the largest shareholder tunneling、manipulating profits、avoiding tax burden and so on. At the end,according to the conclusion, put forward some relevant suggestions of regulating the listedcompanies’ related transaction behavior in our country: in order to regulate the behavior ofrelated party transactions of listed companies in China more effectively, the relevant departmentsshould further improve the corporate governance structure of listed companies, relevant laws andstandards and then improve the quality of accounting information users.