An Empirical Study On The Impact Of Related Transactions On Enterprise Value

Internal transactions between listed companies and related parties will often occur.However,the internal transactions between related parties is very complicated,it may be in pursuit of short-term interests,thus damaging the long-term interests of listed companies and adversely affecting the enterprise value.Therefore,this thesis deeply explores the impact of related transactions of listed companies on enterprise value,then analyzes and tests the impact mechanism of the relationship between them.First of all,this thesis combs the domestic and foreign literature on related transactions and enterprise value of listed companies and looks for a breakthrough in the study of related transactions and enterprise value.On the basis of principal-agent theory and hollowing out theory and other related theories,this thesis combs the logic of listed companies affecting enterprise value and the relevant impact mechanism.Secondly,this thesis refers to the relevant methods used by current scholars to study related transactions and enterprise value and tests the relationship between related transactions and enterprise value of listed companies by using the sample data of China’s A-share listed companies from 2012 to 2021,and further explores the impact mechanism of related transactions on enterprise value.Thirdly,in order to eliminate the endogenous problems,this thesis also conducts the endogenous test of Heckman two-stage,explanatory variable lag and fixed effect model on the empirical research results of the article.This thesis also makes a robustness test of the empirical research results by replacing the explained variables and changing the sample window period.This thesis also makes a group test according to the target listed company as the buyer or seller in the related transactions,and also makes a group test on the property rights of listed companies.The results of this study show that:(1)the relationship between related transactions and enterprise value is negative.(2)In the test of influence mechanism,it is found that financial distress plays a part of mediating role in the negative correlation between related transactions and enterprise value.Related party transactions have a negative impact on the market value of listed companies by increasing the possibility of listed companies falling into financial difficulties.(3)In the further inspection of the listed company as the buyer or the buyer in the related transactions,it is found that the negative correlation between the related transactions and the enterprise value is mainly manifested in the sample of the listed company as the buyer.(4)In the further examination of different property rights,it is found that compared with private enterprises,the related transactions of state-owned enterprises have a more significant negative correlation with enterprise value.Finally,the results of this study can also provide some practical policy recommendations:(1)the regulatory authorities should strengthen the supervision of related transactions,especially the related transactions of state-owned enterprises;(2)Attach importance to the impact of related transactions on enterprise value;(3)Pay attention to the related transactions of the listed company as the buyer.