Research On The Effect Of Related-party Transaction For China Listed Companies

This paper studies the impact shareholding structure on related-party transaction of china listed ompany.First of all, based on the literature review, the paper describes the concept and characteristic of shareholding structure on related-party transaction of china listed ompany. as well as their current situation.Meanwhile,this paper theoretically elaborated three important theories on the origin of related party transaction:the transaction cost theory, the agency theory,and the tunneling and proing theory which are used to construct theoretical model to analyze the incntive and mechanism of major shareholder.Finally,by using the SAS and the date of A-share listing company of Chinese capital market from 2011 to 2014, this paper analyses the impact of the listing corporation’s equity concentration, equity balance degree, the absolute controlling of the first major shareholder of the related party transactions, as well as the impact of related transactions on the value of the company.The paper draws following conclusions based on the theoretical analysis and empirical test:The shareholding structure of chinese listed company is still irrational; the ownership concentration have positive effect on related party transaction significantly, the relation between the check-and-balance ownership structure and the scale of related party transaction is significantly negative; The existence of the controlling shareholder of the listing Corporation is positively related to the scale of the related party transactions; the related party transaction has negative effcet on the company value significantly.The conclusions above show that the sharesholding structure of listed companies in china are still imperfect,the corporate governance is still at a low level and the tunneling through related party transaction by major shareholder in listed company should be restricted.This paper aims to provides more proposals to the regulatory authorities in order to make the shareholding structure of listed companise in china more reasonable, prevent the occurrence of non-fair related party transactions,protect the rights and interests of inority shareholders and produce a healthy and haronious environment for securities market in China.