Research On Financial Risks Control Of Related Party Transactions Of H Company

In recent years,due to the continuous occurrence of illegal cases of listed companies using connected transactions to achieve the purpose of financial fraud,the state is also constantly strengthening the control and investigation of connected transactions,and it is the general trend for listed companies to strengthen the financial risk control of connected transactions.To begin,literature related to the research content is gathered and sorted through the literature research method.Theories such as principal-agent,related party transaction responsibility,and information asymmetry are thus employed.The adoption of field investigation and case analysis techniques is utilized to present all transactions related to H Company from 2013 to 2022,as well as their financial risks.Then,it analyzes the problems and causes of financial risks of related transactions from four aspects: helping major shareholders to deliver benefits through related guarantees,affecting the normal operation of H Company due to the funds appropriated by related parties,making H Company lack of sustainable profitability due to related party asset transactions,and unfair related purchase and sales.Six prevention and control proposals,stemming from two facets of fortifying the internal construction of listed companies and enhancing the external regulatory atmosphere,are finally put forward.Theoretical analysis and case analysis are chosen as the research method,based on the summary of research results related to listed companies’ transactions and financial risk control both domestically and internationally.The domestic H-listed fertilizer enterprise is taken as the case,in line with the explicit regulations of the national regulatory authorities on related transactions of listed companies.In-depth research is conducted to address the financial risks posed by the transactions of listed companies.A thorough utilization of literature research,case analysis,and field investigation analysis techniques to examine the case.This paper’s research is divided into three sections: the initial one being a theoretical analysis,which entails a thorough examination and concise overview of related party transactions and financial risk control in recent years,including the features and classifications of related party transactions,the features and classifications of financial risks,and financial risk management;the second part being a case analysis.which applies the above theoretical An examination of the transactions of H company reveals issues in the utilization of funds,guarantees,asset transfers,and purchase/selling between related parties,resulting in financial risks.This research also examines the sources of these risks.The third part is the solution,that is,the theory and the case analysis are applied,and the solution with reference value is given from the aspects of strengthening the internal construction of H company and improving the external environment.This paper’s innovation lies in its exploration and examination of the organic amalgamation of related transactions and financial risks of H company,revealing a causal relationship between them.Therefore,the organic combination of these two questions establishes a relatively unique perspective.Previous cases tend to put forward specific suggestions based on the analyzed cases.While giving specific improvement suggestions to H Company,this paper also tries to put forward some optimization suggestions with certain general applicability,in order to provide some ideas for future research on connected transactions and financial risks.The disadvantage is that due to the limited data collection channels and the lack of experience,it is inevitable that there will be incomplete and unitary phenomena in the completion of the paper.But these phenomena are not unchangeable,I will continue to understand the relevant knowledge in the future study and continue to improve the article!...