Motivation And Effect Of Affiliate Transaction

Affiliate Transaction is a kind of complicated market transaction which is gradually derived on the corporate system,it developed with the economic globalization.As a market behavior,Affiliate Transaction has played a positive role which the general transaction is difficult to match with in reducing the horizontal competition,saving the transaction cost and improving the resource utilization rate.But at the same time,as the associated transaction has characteristics of complexity and concealment,some of the actual control of enterprises to seek their own interests use Affiliate Transaction to "tunnel digging",evade tax burden or do other illegal activities.This paper starts from the literature research of Affiliate Transaction,and analyzes the main points of the scholars at home and abroad from the three aspects of motivation,information disclosure and effect,and lays the theoretical foundation for the case analysis.Secondly,the entrusted agent and information asymmetry theory are used to analyze the beginning and end of Foshan lighting Affiliate Transaction events,and the motivations,motivations and effects of this event are obtained.Finally,according to the research conclusions put forward the corresponding policy recommendations.In this paper,the case analysis of Foshan lighting transactions through the study found that: this event is the management members use their authority through the affiliated transactions to transfer the interests to their relatives,which is different from the large shareholders of the enterprise using the Affiliate Transaction for tunneling profit.the key driver of Affiliate Transaction is the interest conflict between the management of Foshan Lighting and the large shareholders of Osram.This contradiction is exacerbated by the contradiction decline of the equity incentive.At the same time,the Affiliate Transaction have a strong negative impact on the securities market,following litigation also caused long-term damage on the financial situation of enterprises.But on the other hand,the success of the lawsuit also reflects the legal protection of the rights of investors.