Empirical Study On The Relationship Between Institutional Investors,Related Transactions And Corporate Value

Related party transactions are internal transactions between enterprises and related parties.With the development of the economy,the market is developed,the frequency of related party transactions is getting higher and higher,and the amount of transactions is increasing,and it plays a role in listed companies.A more complex role,which may be used to avoid tax burdens,may also be used for major shareholders "short-selling" and earnings management to damage corporate value.The contradiction of information asymmetry is caused by the continuous concentration of corporate shareholding structure,which leads to the transfer of this contradiction between investors and management to between large and small shareholders.In reality,institutional investors have a higher sensitivity to the related party transactions,so the related party transactions become the key part of institutional investors.one.The existence of reasonable related party transactions is necessary,but the existence of a large number of related transactions based on short-selling or earnings management not only adversely affects the value of the enterprise,but also infringes on the minority shareholders and severely disrupts the market order.Therefore,strict supervision of related transactions is very necessary,and institutional investors are playing this role.Based on this,this paper takes the data of A-share listed companies in Shanghai and Shenzhen in 2010-2014 as the research sample.Based on the research status at home and abroad and related concepts and theories,this paper proposes the corresponding research hypotheses and selects relevant variables.A regression model was constructed,and multiple linear regression analysis was used to perform empirical analysis using Stata13.0 software.The relationship between related transactions,tax avoidance,“short-cut” and earnings management and corporate value is studied,and further consideration is given to the regulatory role of different types of institutional investors.This paper takes related party transactions as the core of the study,and discusses the role of related transactions in the process of tax avoidance,major shareholders “short-cutting” and the impact of earnings management on company value;further study on the different paths using connected transactions as a tool to influence corporate value What role do different types of institutional investors play? The empirical research results show that:(1)The “selling” and earnings management of major shareholders are significantly negatively correlated with the value of the company,while the degree of tax avoidance is significantly positively correlated with the value of the company.After considering the cross-linked items of related party transactions and tax avoidance,major shareholders “short-selling” and earnings management,it is found that related transactions play an enhanced role in the process of tax avoidance,the “selling” of major shareholders and the impact of earnings management on corporate value.Interactions;(2)In the role of connected transactions in the impact of tax avoidance on corporate value,institutional investors and non-independent institutional investors played a depressing role,while independent institutional investors played a reinforcing role;(3)related transactions were “ Institutional investors have played a depressing role in the impact of short-selling on corporate value;(4)In the role of connected transactions in the impact of earnings management on corporate value,institutional investors have not played a role,independent institutional investors have played a role Inhibition,rather than independent institutional investors,has played a reinforcing role.Most scholars at home and abroad have studied the impact of connected transactions on corporate value,and the focus is mainly on one aspect.This paper examines the value of connected transactions from the three perspectives of tax avoidance,major shareholders “short” and earnings management.Impact.Further,this paper studies in the degree of tax avoidance,“short-cut” and the impact of earnings management on corporate value,which was not covered in the past literature.Finally,this paper puts forward the following four related policy recommendations for institutional investors and related parties in combination with research conclusions and realistic background:(1)moderately relax the restrictions on the proportion of institutional investors;(2)actively develop independent institutional investors;(3)Actively guide institutional investors to participate in corporate governance;(4)Improve related party information disclosure policies and focus on related party transactions risks.