Identification Of Related Party Transaction Based On The Motivation Of Tunneling

Transactions between related parties are special deals which appeared in large numbers by the rise of enterprise groups, especially multinational corporations. In our country, because the listed companies always lack of independence, the transactions between related parties are become widespread and have a large amount, and become an important factor which affect the healthy development of securities market. In practice, on the one hand, related-party transactions can reduce the transaction cost and maximize profits of the form. On the other hand, sometimes enterprises always deviate from the fair trade principle of market, forming the unfair related party transactions, which make the distortion of accounting information in different extent and becomes a tool to circumvent the law. Therefore, in order to ensure the interests of investors, it is necessary to improve the ability of identification of related party transactions, strengthen the supervision of related-party transactions. It must disclosed all significant related-party transactions full, timely and reliable.This article mainly studies the indemnification of related transactions, summarizes a set of identification methods, for investors to provide a set of identification system.This article roughly divided into six parts. The first part introduces the research background, research meanings, the structure and content of this essay and its main innovation. The second part explains the definition of related party and its transactions and reviews the domestic and international research on related transactions. The third part illustrates the status of related transactions in our country through the data, analyses the common features of related transactions. The fourth part uses both qualitative and quantitative analysis methods to identify related transactions. In the fifth part, we analysis the case of listed companies which had got out of line, using two methods mentioned above, try to prove correctness and feasibility of the identification method of related party transactions from the perspective of practice. Finally, this paper puts forward measures and suggestions of making related transaction information disclosure more normal. These divide into three aspects, which are internal governance, external regulation and laws or regulations.