Research On The Information Disclosure Of Related Party Transactions Within Enterprise Group

The vast majority of Chinese listed companies are spin-off of enterprise group, so that listed company has innate dependence on the mother of the listed companies, while layers of the investment relations within enterprise group produce a complex of related party relationships, and thus related party transactions will be inevitable. Actually affiliated transaction is a neutral business behavior, and no one country clearly prohibits related party transactions. However, different from common transactions, related party transactions have two sides. On one hand, related party transactions within the enterprise group can save transaction cost, make the best use of resources, and maximize the overall interests of the group as a whole. But one the other hand, the enterprise group is actually a unit organization under the influence or control of a core enterprise, and kinds of multilayered investment relationships within enterprises make those related parties cannot negotiate and carry out business based on an equal footing, so that related party transactions cannot follow the principle of market competition and thus become the tool for profits manipulation and report whitewash, and thus harm the interests of small investors. While it is unrealistic and impossible to prohibit related party transactions, but fortunately, information disclosure is an effective mean to protect retail investors and creditors, and the timely, complete and accurate disclosure of related party transactions can solve the problem of information asymmetric and thereby protect the interests of investors and maintain the order of the securities market securities market order. Just the Louis Brandeis once said,"disclosure is the effective medicine of social order, just as the sun is the best fungicide", so full disclosure on related party information not only facilitate investors to analyze and make decisions, but also can suppress all forms of unfair related party transactions to occur in advance.This thesis, on the base of new accounting standards, uses normative study method to analyze the disclosure status within the Chinese enterprise groups and further put forward targeted suggestions, including a total of four parts.The first part:foreword. It overviews the background and practical value of research. and present literature review.The second part:basic theory. It discusses the definition and characteristics of enterprise groups. the general motivation of related party within enterprise group, and emphasized analyze the necessity of disclosure of related party information as well as the information quality characteristics of related party transaction disclosure.The third part summarizes common information disclosure problems of related party transactions after reading the annual report of Chinese listed companies of year2010and2011.The fourth part puts forward targeted improvement strategies for related party disclosure aimed at problems of the third part, the targeted improvement strategies.Finally, summarize the main content of thesis research and present the limitations of the study, and also put forward the direction of further research.