The Research Of Company Performance, Related-party Transaction And Influencing Factors

Related-party transaction(RPT) is a very common business behavior among public companies in China, especially for the small and medium-sized enterprises. For the past three years, more than 90% public companies listed on Small and Medium Enterprise Board participated in the related-party transactions. However, the effect of RPT on corporation performance is still not confirmed. By testing the relevant financial data of the companies listed on Small and Medium Enterprise Board during year 2011 and 2013, it is found that there is negative correlation between the scale of RPT and corporation performance. Furthermore, through regression analysis, it is also found that: 1) The more share percentage controlling shareholder hold, the larger scale of RPT. 2) The lower share-holding ratio of second shareholder to first shareholder, the larger scale of RPT. 3) The lower share percentage of institutional investor, the larger scale of RPT. 4) The weaker corporate governance, the larger scale of RPT.