A Study On The Impact Of Wanda Film Related Party Transactions On Enterprise Value

Since the reform and opening-up policy,China's market economy and capital market have enjoyed long-term development.Related party transactions with the expansion of business scale and the complexity of economic business came into being.Related party transactions have affection both positive and negative.On the one hand,the use of internal capital markets for related party transactions can save transaction costs,exert synergy effect,improve the efficiency of resource utilization and optimize the allocation of resources so as to enhance enterprise value.On the other hand,in actual related party transactions often exist a party can control or exert a significant influence on the counterparty so that the related party transaction between them is unfair in which the dominant party may use the related party transaction to execute illegal guarantees,transfer profits and take up funds so as to decrease corporate value.This paper mainly uses the case study method to research the related party transactions of Wanda Film Co.,Ltd.In recent three years,Wanda has a large proportion of related-party transactions and this kind of trend is going upwards.There is a big difference in pricing between Wanda Film with related party Wanda Commercial real estate in the "rental transaction" and other comparable companies.Adjusting related party transactions of Wanda Film in 2015 and 2016 on the basis of comparable market prices.The results show that the enterprise value is lower than that before.Therefore,the related party transaction enhances the enterprise value.However,the increase of the value is not caused by the synergistic effect of operation but also the transaction cost saving.The enhancement is the result of the related transaction pricing and the comparable market price the difference.Finally,aiming at the problems existing in the related party transactions discovered in the research,from optimizing the governance of the shareholding structure,strengthening the role of independent directors and audit committees,strengthening the voluntary disclosure of companies,strengthening the necessity and fairness of related party transactions,and perfecting disclosure of policy information on pricing information.Professional agencies have made suggestions for improvement in terms of the advantages.