Research On The Related Party Transaction Supervision In Public Companies

Qiong minyuan’s boards collectively resigned after manipulating the stock abnormal high price in1997years. After almost one year’ survey, CSRC found that Qiong minyuan have made up a￥540million profit through signing invalid contract with related parties. The result led to very badly effect. According to statistics, about90%of the public companies exist related party transactions. In order to guiding the rpt proceed fairly and preventing the public company from inside control with unfair rpt, the ministry of finance issued<accounting standards-the disclosure of the relationship and related party transaction> in May1997. Since then, state administration of taxation、stock exchange、CSRC have issued policy of rpt in succession. At the same time, public companies have strengthened the supervision of rpt by improving internal structures.Firstly, on the base of analyzing the research background, purpose, system and the current regulatory problems, I have analyzed the public companies’present situation of rpt between2003and2010with the method of statistical description and the detail effect upon the disclosure status the disclosure status、disclosure object and the industry. And then come to the conclusion that more than90%of the company has rpt, the information disclosure situation has been improved but the key trading pricing method still need to be improved, the proportion of the guardant capital、 commodity exchange and industry is larger. Secondly, I have analyzed the relationship between the size of rpt and the proportion of the first shareholder ownership’s balance、boards、independent director、supervisory board to checkout if those supervisions have reached the expected effect. And then come to the conclusion that the stock proportion of the first shareholder, the size of boards has positive relationships with rpt; ownership’s balance has negative relationship with rpt and independent director、supervisory board has not relationship with rpt.Thirdly, I have given some suggestion about how to reduce unfair rpt, for example: improve accounting information disclosure system、put focus on significant rpt、enlarge the cost of law-breaking、improve the independence of board、independent director and supervisory board, so as to provide theoretical guidance and empirical data support for related departments.