Fairness Analysis And Supervision Research On Related Party Transactions Of Listed Companies

In the process of China’s market economy, especially the rapid development of the securities market, connected transactions of listed companies to become a common mode of operation. In recent years, China’s listed companies related transactions is developed from related purchases and sales to the development to the equity transfer and replacement of assets, from the trading to tangible assets to the trading of intangible assets, entrusted with the operation occurred less in the past, has become increasingly common. Connected transactions actually belongs to the neutral areas of the economy, a fair connected transaction can reduce business costs, improve operational efficiency and market competitiveness, and through the appropriate Enterprise Group trading arrangements conducive to the profits of the largest conglomerates and implementation of the overall strategic objectives. However, due to interest transaction between the parties, will produce some form of non-standard transactions, such as the use of connected transactions of listed companies publicly report lower earnings information, the lower the degree of information disclosure; shareholders or directors or other internal, using the association transactions between related enterprises improper transfer of assets of the phenomenon; still associated with trading the price of the transaction, these actions will result in an unfair connected transactions, also called "non-fair connected transactions" harm minority shareholders and creditors interests.Most of the ownership structure of listed companies is "dominance" form, the controlling shareholder grasp the actual control of listed companies have an important impact on their business decisions. Seek to maximize the interests of the controlling shareholder for the purpose of manipulating connected transactions of listed companies, the related transactions are very common in our country. Unfair connected transactions invaded the interests of small investors and hinder long-term development of the company, but also affect the entire stock market and capital market fair and just market order and endanger national economic development. So for the supervision and management of connected transactions is particularly important to strengthen the interests of listed companies and their related parties conduct regulation and supervision, help to protect the legitimate interests of medium and small investors and maintain the healthy development of the market order. Basis for solving related transactions listed in unfair trade problem is to determine the fairness of connected transactions. Some study abroad definition of it mainly from the perspective of law studies, due to legal types involved, which is why there is no uniform definition of widely recognized. In this paper, starting from the point of view of economics, related party transactions to determine the fairness of the proposed method for a universally applicable, that is, control over cash flow and earnings gains based on the proportion of total income to determine the size of the transaction fairness Use game theory to analyze the relationship between the interests of the stakeholders associated with the transaction between the discovery and the regulatory supervision of the second largest shareholder of checks and balances for related party transactions unfair regulatory effect is obvious, and the smaller the supervisory role of minority shareholders, as related party transactions regulators provide theoretical support.