Study On The Related Party Transactions To The Value Of Listed Companies

The related party transaction refers to the transfer of the transaction between the related party and the related party in the listed company group,including the subsidiary company,which involves the transfer of resources,services or obligations,Whether or not to charge the transaction price.The affiliated transaction is the product of the market economy and the development of the company system.Along with the vigorous development of the stock market,it comes into people's field of vision.Related party transactions as a special way of trading,fusing of the transaction costs of enterprises,ownership structure,agency problems and internal control issues,has been attracting attention of scholars at home and abroad.From this point of view,the related party transactions directly or indirectly affect the value of listed companies.Based on the research results of domestic and foreign scholars,there are many problems and theories involved in the related party transactions,and due to perspective of research methods,the selection of variables and the diversity of the samples,the scholars have different conclusions.On the one hand,related party transactions can effectively reduce the high cost of transaction caused by asymmetric information and transaction friction,and optimize the allocation of resources,so as to enhance the market competitiveness of enterprises,thereby enhancing the value of listed companies.On the other hand,the controlling shareholder plays a decisive role in the formulation of the financial and operating decisions,they take their advantage of absolute control to transfer the company's assets,so as to invade the interests of minority shareholders and harm the value of listed companies.The existing research on the relationship between related party transactions and the value of listed companies,pay much attention to the influence of the transaction brings to the enterprise,while ignoring the definition of transaction occurs at the capital market,thus distorting the fairness of the transaction.Therefore,this paper studies the impact of related party transactions on the value of listed companies from the point of internal capital market.This paper,selecting the listed companies in China's Shanghai and Shenzhen A-share market 2013-2015 as the research object,drawing on the theory of transaction cost,the theory of internal capital market,analyzes the occurrence degree of related party transactions,the fairness of related party transactions,and the influence of the interests of related party transactions on the value of listed companies.Analysis results show that at present,a large number of related party transactions exist in China's listed companies,and the largest proportion of the related exchanges in the internal capital market.And without division of trading places,related transactions can enhance the value of listed companies and the effect is small,but in the limited trading place of internal capital market,the promotion effect is stronger.Therefore,reducing the financing constraints is an important factor for the listed companies to choose related party transactions.After that,using modified Jones model to calculate the unfair related transactions of listed companies,analysis results show that unfair related party transactions will reduce the value of the company,and the reduction effect is stronger in the internal capital market.Finally,the analysis shows that the net inflow of benefits can enhance the value of listed companies,the net profit outflow will reduce the value of listed companies.According to the empirical results,combined with the status quo of China's capital market,the author puts forward some suggestions from three aspects,namely,correctly understanding and regulating related party transactions,improving the internal governance mechanism,and supporting the incentive measures.