| Related party transactions is a widespread economic phenomenon in the process of company operating.Due to its special transaction terms,related party transactions have important impact on the company's business.The financial scandals triggered by the related party transactions are also highly concerned by the academic community.Currently,most of the discussions in the academic circles on related party transactions are concentrated at the corporate level.However,for investors,the performance of the company shares in the capital market is more important indeed.Stock price crash is an important phenomenon in the capital market,which can bring a heavy blow to investors and market.So will the related party transaction affect the company's stock price crash risk?If so,how does it work?These are the concern of related party transaction economic consequences.The article is the first one from the performance of the listed companies in the capital market and about stock price crash risk perspective to explore the economic consequences of related party transaction.The article selects 2009-2015 A-share listed companies data as sample,and discusses what influence the related party transactions have on share price collapse.Based on the lower transaction cost,ease the financing constraint and propping from big shareholders,we learned the mechanism that how related party transaction affect stock price crash risk.The empirical results show that the related party transaction can significantly curb the stock price crash risk.It means that the related party transactions play a positive role in capital market.The answer is that the related party transaction have the positive effect of effectively reducing the transaction cost and alleviating the financial constraints faced by the listed company.Then the related party transaction will affect the risk of the stock price crash through these two channels.But the mechanism of propping from big shareholders is not significant.Further,The article explore the related party transaction of various trading forms may have different impact on the stock price crash risk.There are main four types in the form of related party transaction:commodity trading,guarantees,labor and funds.Only commodities trading related party transaction can significantly affect stock price crash risk.Intra-group related transactions can significantly inhibit the risk of stock price collapse,rather than the Group's related party transactions is not significant.From the point of view of pricing policy,only the related transaction with the market price can play the effect of restraining the risk of the stock price crash.The market pricing can guarantee that the two parties of the transaction are carried out under fair conditions,so that the related transaction can play the role of efficiency promotion.In further research,the impact of related party transactions of listed companies on stock price crash risk differ in the external information environment(marketization and analysts focus)and internal information environment(information opaque and audit quality).The lower the degree of marketization,analyst attention and audit quality,and the higher level of information opacity of the listed company,the more related party transactions can reduce transaction costs or alleviate the effect of financing constraint,thus effectively inhibit stock price crash risk.At last,the theory results of the study enriches research literatures about the related party transaction economic consequences and stock price crash risk factors,and reveals the role of related party transactions that affect stock price crash risk and the mechanism of action.In practice,it is helpful for people to better understanding related party transaction,also help regulators,companies and investors to understand what influence related party transaction of listed companies have in the capital market It may has important reference significance.to better guard against stock price crash risk from the angle of related party transaction. |
PDF Full Text Request