Family Firms,Company Performance,Expropriation And Regulatory Efficiency

Although the regulation of related transactions has been very strict,the phenomenon of arbitrage through the related transactions still exists.So the article takes the related transaction as the breakthrough point.The article studies the influence of the related transactions on the interests of large shareholders and the performance of the company.In order to distinguish the impact of related transactions in different enterprises,this paper will divide the sample into the family firm sample and non-family firm sample.The study shows that the major shareholders still encroached the interests of small and medium shareholders through the related party transactions in 2010-2014.Moreover,with the increase of the size of the related party transactions,the degree of encroachment on the interests of small and medium-sized shareholders is more and more serious.The comparison between the family enterprises and the non-family enterprises shows that the extent of the encroachment of the big shareholders in the family business is more serious,and the interests of the minority shareholders are damaged seriously.Of course,related transactions will have an impact on the company's performance at some level.Large shareholders will transfer interest through related party transactions,and it will affect the company's performance.The larger the size of the related transactions,the greater the negative effect.Then the company's performance will be worse.After grouping the samples,it was found that this phenomenon was more pronounced in the family firms.In 2014,the new Company Law emphasized the impact of the relationship and limited the voting rights of the associated shareholders and the associated directors.In 2014,the SFC issued a revised version of the guidelines on the implementation of connected transactions and imposed sanctions on non-standard related transactions.These facts indicate that regulators are paying more and more attention to related transactions and the regulation is also becoming more stringent.As the regulatory environment is more stringent,the empirical analysis shows that the relevant transactions tend to regularization and the degree of the encroachment of the big shareholders has been alleviated in 2015.However,the increase in the regulation of related party transactions did not improve the negative effect of the related transactions.When the amount of related transactions gets bigger,the company's performance is still worse.