A Study Of Information Asymmetry And Supervision On Related Party Transactions Of Listed Companies

With the development of the securities market in our country, the investing andfinancing channels for people and enterprises were widened, the capitals for thereform and development of state-owned enterprises were provided, the difficulties andsocial problems maybe accompanied were mitigated, the distribution of socialresources were optimized. However, as a result of the faultiness of law, more andmore illegal affairs appeared in the securities market, which damaged the benefits ofinvestors and the healthy development of the market. The related party transactionsare such events.In the beginning of the paper, the motivation and intention and framework areanalysed.the concepts of related party and related party transaction are defined. Thenthe forms and effects of related transaction are analyzed and corresponding cases aregiven. According the positive analyses of related party transaction, the paper indicatesthe status and characteristic of the related party transaction of list corporations.Moreover, Indicate that information asymmetry is main causation of the related partytransaction.In succession, the paper analyses the information asymmetry and supervisionsystem. Firstly, the relation between information asymmetry and governmentsupervision of related party transactions is studied. Secondly, the paper studies therelation between information asymmetry and market supervision of related partytransactions. Then, the relation between information asymmetry and mediasupervision of related party transactions and the relation between informationasymmetry and interior supervision of related party transactions are analyzed in turn.In the end of the paper, conclusion is summarized. The conclusion of this paperis summarized. Indicate that the related party transaction is ubiquitous; The disserviceof the related party transaction is very big and need to be supervised. The informationasymmetry is main causation of the related party transaction.The innovation anddeficiency of this paper is summarized too.The expectation of this paper is pointed.