The Empirical Study On The Related Transaction And Earning Management Of Loss Companies

What motives have loss companies to deal with abnormal related transaction in the profit year? This paper is trying to answer it. First of all, this paper analyses the system that promotes unfair related transaction and variance of regulatory regime, and explores relations of related transaction and earning management of loss companies. Second, it uses the method that is different from literature in Mainland China, adds the related transaction factor to consider the earning management of loss companies, and draws the conclusions through empirical method. Last, it gives some suggestions to criterion unfair related transactions.