Research On The Relationship Between Related Party Transactions And Corporate Governance And Corporate Value

Along with the development of company system and the benefit relationship between associated parties, a more complex economic phenomena-related party transaction produced, which generally exists in the operation of all countries’ companies. Related party transaction transforms the market deals as the company’s internal ones, which may save the cost, obtain the coordination scale effect, thus they are advantageous to the promotion of the company’s value. But, Principal-agent Theory actually believes that benefits are usually diverted away from listed companies by related parties through their control or significant influence, namely “the tunneling”, which finally harms the company’s value.It follows the causes and effects master line “Corporate Governance-Related Party Transaction-Corporate Value” to launch their relationships. The following conclusions are received through descriptive and empirical analysis: Corporate governance mechanisms affect the magnitude of the related party transactions. The proportion of the first shareholder is significantly positively related to the related party transaction. Equity balance degree is significantly negatively related to the related party transaction. The characteristics of board of directors and the board of supervisors are not obviously related to the related party transaction. The related party transaction is significantly negatively related to the company value no matter Occupation or Propping.According to the conclusion, we can try our best to standard the related party transaction. For example: to encourage small investors to participate in the supervision; Actively to encourage strategic investors to form an effective balance of ownership. to strengthen the role of independent directors and board of supervisors; to improve the financing environment of the securities market; to strictly regulate the market intermediary organization.