Study On The Relationship Between Related Party Transactions And Firm Value Of Listed Companies Based On The Perspective Of Ownership Structure

With the development of corporate enterprises and the related party relations, related party transactions emerged and have produced more complicated economic phenomenon.Related party transactions became prevalent in the world’s economic operations and can also reduce transaction costs, optimize capital structure, improve market competitiveness.However, it seems that the extensive use of related party transactions makes controlling shareholders becomes contrary to the target of the listed company, against the interests of minority shareholders and even empty the assets of companies, seriously affecting the capital markets in resources allocation and sustainable development of society and economy. Therefore, we need to conduct further research to study the value of related party transactions and the influence they have.First, based on a review of relevant literature accompanied by coordination theory,transaction cost theory, the internal capital market theory, agency theory and tunneling theory used in studying the relationship of related party transactions and firm value,specific analysis shows that, in some extent, related parties transactions can achieve synergies, reduce transaction costs and capital costs, and play a more active role in the assets investments. However, related party transactions have become the tools of internal controlling shareholders to violate the values of companies.Secondly, we selected A stock market listed companies in the period from 2011 to2013 to study the related party transactions, respectively in the aspects of capital market,the different types of related party transactions and different industries in related party transactions as well as various related parties.Then, based on the ownership structure of listed companies, we analyze the relationship between related party transactions and enterprise values via empirical study,using descriptive statistical method analyzing the ownership structure, related party transactions and firm values of listed companies; then, we study how concentration and balance of ownership structure affect the scales of RPT,, on this basis of which, we further explores the influence of the equity balance and RPT size to firm value. We also explored that under different ownership balance conditions how non-fair RPT affect listed company values.The results show that: in China’s listed companies, RPT size has a positive relationship with the ownership concentration, and negatively correlated with ownershipbalance; Second, China’s listed firm value has a positive relationship with equity balance and has a negative relationship with the RPT size. In general, the occurrence of RPT reduces listed firm values, and the values rise as the increasing of equity balance; when under the low degree of equity balance, non-fair RPT trades can elevate enterprise values.