Related Party Transactions And Corporate Governance Structure Research

With the stock market developing and quantity of the listed company increasing, conflicts of interest arising from trades between related parties become increasingly serious. It is an impossibly evasive question how to solve the questions of related trades, for all investing parties, China Securities Regulatory Commission and the department establishing the accountant criterion. At the present situation, the system whether about accountant criterion or about legal supervision is developing, so, how to restrict the action of related transaction into balance range among parties involving various profit becomes a realistic question.The relationship between affiliated trades and corporate governance is systemically analyzed to discover reasonable corporate governance, which can solve the problem of related party transaction. The controlling shareholders infect the fair of transaction with the controlling power, and related party transaction must change the asset structure in corporate, no matter what their initial purpose is, so The abnormal infections indicate that the equity of transaction is susceptible. We can judge the totally fair extent in trades by the propriety of corporate governance structure, for it is just corporate governance structure that gives controlling shareholders the rights to affect transactions.This article discusses the influences of the equity structure and the characteristic of corporate board imposing on the related party transaction, and the results of empirical analyses show as follow: 1. the extremely centralized equity structure easily results in the problem of related party transaction; 2. the higher percentage of circulating stock help to restrain related party transaction; 3. the bigger scale of corporate board can decrease related party transaction; 4. the more directors from controlling shareholder give the fair nature of related party transaction negative infection; 5. the combination of the management right and the supervision right to management induces more problems of related party transaction.Among the above work done there are the following three new ideas:1. measure the effect of related party transaction by parameter β;,2. empirically analysis the relationship between β and the equity structure and the characteristic of corporate board, and make it academically possible to solve the problem of related party transaction based on improving corporate governance structure;3. form new viewpoints on how to find and restrict affiliated trades between the listed companies and their related parties.The studies in this paper help confine the related party transactions.