| The decision-making useful view has become the mainstream of the international and national financial report targets, so is China. Based on the decision-making useful view, financial reports can improve the value relevance of accounting information. The two-sides of related party transactions, as one of mandatory disclosure of important information in the notes to financial statements, the effective capital market will react through the profit information of related party transactions.Firstly, this article introduced research literatures and research achievements of related party transactions and earning’s value relevance at home and abroad, then define the definition of earning’s value relevance, then analyzed the effect and benefit-flowing of related party transactions, and then analyzed the conduction between them. In the research design, the overall situation analysis of related party transactions show that:the related transactions of listed companies in China are widespread; the specific situation analysis of related party transactions show that:related party transactions mainly focused on the purchase or sale, the associated guarantee; the analysis of related party transactions and industry show that:the proportion of related party transactions in manufacturing industry is the biggest. This article selects a-share manufacturing listed companies of 2008-2011 years in China.This article research conclusions show that:(1) Annual reports of listed companies of earnings information is useful and relevant. (2) The degree of related party transactions has a significant influence on earnings value relevance. (3) Within a certain range, the earning’s value relevance value will be higher with the increasing scale of related party transactions. (4) Between related party transactions and earnings value relevance appears Parabolic nonlinear relationship. |
