Case Study On Related Transaction Of QXH Company

With the increasing competition in the market and the trend of collectivization becoming more and more serious,the related party transactions have become a common means of enterprise management.With the emergence of asset restructuring,the earnings management problem of China's listed companies has been spreading rapidly,which has become increasingly fierce.The purpose of related transactions has evolved from initial saving transaction costs and reasonable tax avoidance to manipulating operating profits,beautifying corporate image and transferring benefits to major shareholders.China's listed companies achieve the listing mostly through asset stripping means,as there is a perplexing relationship between the listed companies and their supporting groups behind,which provides convenient conditions for controlling shareholder of mining tunnel.From the current development situation,the controlling shareholders use related transactions to tunnel mining.This behavior has seriously damaged the interests of the company,finally been severely punished by SFC.QXH Limited by Share Ltd exist many related enterprises and related transactions,the company has been investigated and punished by the SFC for many times,this case is typical and representative in the study of related enterprises,so this paper research and analysis of QXH Limited by Share Ltd.First of all,this paper reviews the related theoretical research results of related party and related party transactions.Then,according to the theory of specific analysis of the relevant financial data of QXH for nearly 5 years,dig out the QXH transaction through the implementation of the specific means of transfer of benefits,such as the related purchase and sale,guarantees and related assets purchase and replacement of the listed companies transfer profits to the associated enterprises.The economic consequences of these related transactions in the company are analyzed: through the related transaction profit transfer,the market value of the company is declining,the financial situation is deteriorating,and the long-term operating capacity is affected.Finally,combined with the conclusion of QXH company case analysis,this paper puts forward some suggestions to avoid the company stock ownership " the single-large shareholder",expand the scope of related party transactions and other related recommendations to regulate the related transactions of listed companies.