Study On The Relationship Between Controlling Shareholder's Related Party Transaction And The Characteristics Of The Listed Companies

This paper is on the study of the controlling shareholder's related party transaction and their respective characteristics of the listed companies comprehensively and deeply in the full circulation background, making use of the empirical research method, to study the relationship between the listed companies' characteristics and the controlling shareholder's related party transactionWith the development of modern companies, the controlling shareholder in the role of corporate governance has become increasingly important. The company's internal principal-agent relationship is not the traditional relationship between shareholders and managers, but the principal-agent relationship between external investors and controlling shareholders. This paper is based on this logical starting-point, In order to analyze controlling shareholders' related party transaction and study their characteristics of their listed companies the paper is focus on controlling shareholders related party transaction in the listed companies of China, as well as studying the impact on the listed companies' characteristics to the controlling shareholders' related party transaction.Theory and the results of the study at home and abroad have been reviewed. First this paper gives a definition of related party transaction. In the view of the special characteristics of the securities market, It inspects the changes of controlling shareholder after the share reforming of listed companies in China and studies the controlling shareholder's related party transaction in the full circulation times.It analyzes the controlling shareholder's behavior change after the reform of shares separation respectively, and then for the full circulation time producing such acts characteristics of the companies to conduct in-depth research.It selects listed companies as a sample in 2007, T-tests and logistic regression analysis to validate the issues of the impact on characteristics of listed companies to controlling shareholder actions, and draws the corresponding results.This paper shows that it has a close relationship between the controlling shareholder's related party transaction and characteristics of China's listed companies. If the holding rate of the largest shareholder is higher, actual controller is the state-owned, holding companies share's director ratio is higher ,the companies' scale is larger, rate of increase of assets is higher, and trade state is non ST, the controlling shareholders are more inclined to use related party sale; the companies' scale is larger,cash flow per share is higher and current ratio is lower , trade state is non ST, the controlling shareholders are more inclined to use related party guarantee; Lastly, the controlling shareholders are more inclined to use related party assets purchase and sale in a better return on assets , higher ratio of below-the-line accruals and higher holding rate of the largest shareholder.