Study On The Influence Of Related Party Transaction To The Profits Of The Listed Companies

The new accounting standards issued in2006, specifically refinement and improvement of the new guidelines on related party transactions. Associated with trading the two sides decided It can be beneficial to listed companies take full advantage of the resources of the internal market, They may give statements listed companies related party transactions to manipulate and harm the interests of investors and creditors. Therefore, the specification of the behavior of related party transactions of listed companies in China is to ensure that the transaction of public companies acts of openness, fairness and impartiality. It has far-reaching social and economic significance.The purpose of this paper is to discuss the following questions:How did the new standards of related party transactions impact profits of listed companies through two decades of development of related party transactions? Which were the important factors that lead to the related transactions? What were the real influence of the related transactions to the company’s shareholders, creditors and regulatory agencies?It researched associated with trading profits and causing factors related party transactions of listed companies with323listed companies associated transaction data between2008and2010. A descriptive analysis of the statistical analysis and multiple regression analysis were used to analyze the number of related party transactions occurred in recent years. The study results showed that:There were large differences in the extent of related party transactions of listed companies in different sectors, such as remuneration of key management personnel, related purchase and sale of goods, guarantees and other types. Related party transactions had become one of the important factors that changed the profit of listed companies.Framework structure of the paper:(a) Introduction;(b) on the evolution of a literature review of related party transactions and the system of policies and regulations;(c) analysis based on the theory of related party transactions;(d) listed companies related party transactions empirical analysis of the impact on profits;(e) conclusions and policy recommendations.