Research On Related Transaction Of YRSP Company

In the business activities of enterprises,related party transactions generally exist.Related party transactions have two natures,one is the view of cost efficiency,the other is opportunistic motivation,which can bring benefits to the operation of the enterprise by reducing the transaction cost of the enterprise;the other is that it becomes the major shareholder to carry out the transmission of benefits.Hollowing out the listed company means or become a management way of earnings management.With the continuous development of the capital market,enterprises have carried out joint stock system reform,financing through the way of listing to obtain rapid development,in this context,the number of related party transactions is rising.And most of the related party transactions of listed companies and their problems are also more and more exposed,using related party transactions fraud is also endless.Because of its complexity and concealment,it is difficult to identify and discover unfair related party transactions.Its existence disturbs the normal development of market economy,misleads investors and damages the legitimate economic interests of related parties.Therefore,it is necessary to increase the research and exploration of related party transactions,analyze the development characteristics of related party transactions of enterprises,expand the depth and breadth of the research,and provide theoretical basis and corresponding supervision measures for the capital market to seek advantages and avoid disadvantages and to develop healthily.In the guidelines issued by the Ministry of Finance,the SFC and the Hong Kong region,related party transactions are regulated.Strengthen supervision in order to seek advantages and avoid disadvantages,unfair related party transactions harm the legitimate rights and interests of minority shareholders.In this paper,the related theories of related party transaction including transaction cost theory,tunneling behavior theory,principal-agent theory and so on are first expounded,and the related studies of related party transactions at home and abroad are summarized.Secondly,YRSP Company is selected as a case study.The development period since its listing is divided into two stages by cash flow,salesvolume and cash flow,using the method of enterprise life cycle division.According to different stages of development,related party transactions are analyzed and studied.The study found that under different development stages,the related party transactions of enterprises show different characteristics.When the listed companies are in the rising period,the cash flow of the enterprises is different.When the enterprise is abundant and the value of the enterprise is high,the capital flows mainly from the listed company to the related party,and the listed company has the situation of being occupied by the related party,and it is easy to have unfair related party transactions;however,when the listed company is in financial distress,The enterprise value is reduced,the capital flows mainly from the related party to the listed company,there is no case that the related party occupies the funds,but it is easy to use the related party transaction to adjust the profit.In addition,according to this characteristic,this article discusses the related party transaction occurrence and the supervision suggestion and the measure.Starting from a single case,this paper studies the occurrence behavior and characteristics of related party transactions from different stages of development of enterprises,analyzes their stage characteristics,and provides a useful supplement for the study of related party transactions.