A Research On The Related Party Transactions Accounting Supervision Of Listed Companies

Related party transaction, a kind of business behavior which related parties transfer resources or obligations, is an important component of the economic behavior of the listed companies. Listed companies can depress transaction cost, improve capital operation ability and operational efficiency, and achieve the maximization of profit of the whole corporate groups through related party transactions. But there are some listed companies harm the interests of other subjects by unfair related party transaction. Unfair related party transactions reduce competitive power and independence of listed companies, by which the controlling shareholders hollow companies and prejudice the interests of other shareholders, destroy market resources allocation function and undermine stability and development in stock market. As the related party transaction accounting supervision to be more perfect, a series of new problems appeared. It is significant to improve the related party transactions accounting supervision system.This paper adopts the method of normative analysis combined with statistical analysis, qualitative analysis combined with quantitative analysis, static analysis combined with dynamic analysis on the research of related party transaction accounting supervision. This paper includes five parts:The first part, preface, introduces the background, motivation, research situation and the innovations and deficiencies. The second part, the theoretical basis of related party transactions accounting supervision of listed companies, expounds the connotation of related party transactions, the target, content and mechanism of the related party transactions accounting supervision of listed companies. The third part is the statistical description of related party transactions accounting supervision of listed companies. This part analysis the overall characteristic, the information disclosure, the type distribution, the industry distribution and the object distribution of related party transactions of listed companies, the 1998～2009 annual financial statements of the a-share listed companies in Shanghai and Shenzhen Stock Exchange as samples. From the statistical results, the related party transactions accounting supervision presents more effective gradually, but there are also some defects. The fourth part, problem analysis, analyzes accounting supervision problems of the related party transactions from subject level, object level, regulations level and moral level. The fifth part puts forward some proposals to improve the related party transactions accounting supervision of the listed company. Enhance the supervision force of the supervision subjects, perfect the corporate governance structure, perfect accounting rules, tax law, company law and the securities law in related party transactions and deepen the accounting supervision moral restraint.The statistical description part of related party transactions accounting supervision of listed companies, uses large and long time span samples, which selects the data of 1998-2009 annual financial statements of a-share listed companies in Shanghai and Shenzhen Stock Exchange (eliminate ST,* ST, suspended and delisting companies). Furthermore, this paper brings moral supervision into accounting supervision of related party transactions, which proposes that in order to enhance the effects of related party transactions accounting supervision of listed companies, we should deepen the moral supervision of the related party transactions, increase the cost of dishonest related party transactions and improve the personnel quality of supervision department. Hope that this paper will enrich the research contents, perfect the supervision system and enhance the effects of related party transactions accounting supervision of listed companies, and make the related party transactions of listed company fairer, more legitimacy and publicity.