| Related party transaction, as a common phenomenon in the listed companies, has been widely studied in theory and practice. The performance appraisal requirements of company that tend to make the management come into being under pressures. There is a cyclic relationship between related party transactions, management performance, and the value of the company. And the related transaction of state-owned listed companies also has caused widespread concern as a result of the huge amount, the particularity of its nature, the similarities and difference of the characteristic of its management and internal control between state-owned listed companies and private enterprise.At present, most studies of scholars are on the perspective of controlling shareholders. However, there are few researches on state-owned enterprise-whose internal management serves as an actual controllers-the reason for its use of related party transactions, and economic consequences.In this paper, I chose CSR Corporation Limited, the body part of CRRC Corporation Limited before it merged with CNR Corporation Limited, as a typical representative of state-owned enterprises to illustrate. And this research used management in different external environment, special equity structure and corporate governance structure as the breakthrough point to study the performance requirements and behavior characteristics of the management based on these factors, and to analyze the reason for the use of related party transactions and its contribution to economic as well as its impact on the value of the state-owned listed companies. Specific research contents are divided into three parts:analysis of the use of related party transaction by management in different external environment, the reason for internal control to use related party transactions under special equity structure, and the impact of corporate governance structure on the restraint of related party transactions. According to my study, I found that:(1) Perfect the corporate governance is to solve the principal-agent problem and the ultimate way of prevent the unfair related transactions occur. (2) Company and effective compensation system for senior management, reasonable use of related party transactions improve return on net assets and the value of the company has a big role, but if the salary incentive system if it is too radical not in conformity with the management of expectations, will hit the management’s enthusiasm, under the interests temptation is likely to use related party transactions to profit manipulation, so as to achieve performance index and damage enterprise value; (3) Related party transactions can enhance the value of the company, the main is whether the related party transactions fair, and belongs to the daily transactions or control purposes. The fairness of the in line with market price associated business daily, to improve the value of the company; Otherwise damage the value of the company’s ascension.The innovation point in this paper lies in:(1) discuss the reason for the use of related party transactions and its economic consequences from the management perspective; (2) study the cyclic relationship between executives’performance, related party transactions and the value of corporate in order to further discuss incentive policy decision. The significance of this study is:(1) how the state-owned enterprise can enhance company performance appropriately use related party transactions; (2) how to carry out the executive performance appraisal, and to relieve the agency conflict between actual control and internal control (management); (3) provide reference and inspiration for equity structure and corporate governance structure of the state-owned enterprises... |
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