Empirical Research On The Affect Of Corporate Governance Structure To Related Party Transaction

With the development of the society and economy, related party transaction appears as a special mean of transaction within the company. The emergence of the related party transaction has pros and cons to company, in the one hand, the related party transactions beneficial group of listed companies rational use internal resources, reducing the uncertainty of the transaction, intend to reduce the transaction costs and improve the operational efficiency of the group of listed companies; but on the other hand, the price of the related party transactions is not the fair market price, it always higher or lower than the fair market price, related party always make the price through the negotiation of the parties to make both sides have interests from the transaction.his is not only contrary to the fair trade market, but also contrary to the principle of fair competition, what is more, related party using related party transaction to make fictitious profits and transfer the assets of the company, infringe on the interests of small shareholders, so that the related party transaction than the transaction price higher or lower than fair market price not only isn’t conducive to the healthy development of the listed companies, but also not conducive to the healthy development of China’s securities market. So, how to regulate the related party transactions, to keep the good aspects of the related party transactions and to avoid the downside, is the question for us to solve.The data using in the text from the annual report of the listed companies released by the Main Board of Shenzhen Stock Exchange, using the related purchase and sale of the scale as be explanatory variables in the text, using the first big shareholder’s holding proportions, the rate of the equity checks and balances, the board of directors size, the board of supervisors size, disclosure of information evaluation as explanatory variables in the text, and also using SPSS18.0to analyze the data to obtain the relationship between the corporate governance structure and the related party transactions:there is a significant positive correlation between the first big shareholder’s holding proportions and the related party transactions; there is no significant relationship between the rate of the equity checks and balances and related party transactions; there is no significant relationship between the size of the board and related party transactions; there is no significant relationship between the board of supervisors size and related party transactions; but between the information disclosure evaluation and related party transactions showed a significant negative correlation. In the text I also analyze the practical reasons of these conclusions obtained from the analysis. Based on these conclusions obtained from the empirical research, put forward some targeted suggestions to regulate the related party transactions.