Study On The Relationship Between CFO Influence And Related Party Transactions

The related party transactions of listed companies in our country exist widely in the economic operation.As a kind of complex and unique business form,the related party transactions is a "double-edged sword".The related party transactions have an undeniable advantage in saving costs,yet at the same time,which also tend to be an important way for large shareholders to carry out benefits.Early scholars study of related party transactions is mainly focused on two aspects:one is from the perspective of the influence factors of the related party transactions to study the relationship between the internal control,ownership structure and independent director system,etc..The second is the perspective of the influence of related transaction to study the influence of related transaction on capital allocation efficiency,audit fee and enterprise value.However,by analyzing the results of this study carefully,we found that most scholars ignore the executives heterogeneity influence on related party transactions,and only less scholars analyze the relationship between senior executives’ independent director background with the related party transactions.According to the high-level echelon theory,the background characteristics of the executives influence the behavior decision and strategic choice to a certain extent by influencing the way of thinking,thus affecting the behavior of enterprises.Moreover,as a social person,the executive is a complex of various characteristics,and its thinking mode and decision-making behavior are not only influenced by a single feature,but also a behavioral choice under the combination of various characteristics.As the key person of financial decision,CFO is responsible for regulating related party transactions.So,how does CFO influence affect business related transactions?Based on this problem,this paper intends to study the effect of CFO influence the overall scale of related party transactions,and to distinguish the nature of the related party transactions,further inspection CFO influence on normal related transaction and exception if there is a difference between the influence of related party transactions,verify the CFO influence whether abnormal related transactions of the enterprise have specification.This paper is divided into five chapters.The first chapter is an introduction,which mainly elaborates the research background and significance of this paper,summarizes the research results of domestic and foreign scholars about the executives’traits,the CFO background characteristics and related party transactions,introduces the research ideas,research methods and innovation points of this paper.The second chapter defines related concepts,such as CFO,CFO influence,related parties and related party transactions,and introduces theories including the upper echelon theory,principal-agent theory,the "empty" theory and other related theories.The third chapter is the theoretical analysis and the research hypothesis,this part reviews the historical evolution of the CFO system in China,at the same time,analysis the present situation of related party transactions of listed companies in China,and proposes the research hypothesis of the dissertation based on this.The fourth chapter is the empirical research.Basing on the data from 2011-2016 A-share listed companies as research samples,this paper conducts an empirical study on the influence of CFO and related party transactions..The fifth chapter is the research conclusion and policy suggestions.The research results of this paper show that:(1)the influence of CFO has a negative effect on the related transactions of listed companies in general.Specifically,the stronger the organizational influence,professional influence and ownership influence of CFO,the smaller the transaction scale of enterprise related parties.The influence of CFO’s reputation influence on related party transactions has not passed the significance test.(2)to distinguish the nature of the related party transactions,the CFO organization influence,professional influence and ownership were positively associated with normal trading relations,and negative to the relationship between abnormal related transactions,and the impact on the abnormal related transactions is bigger,and reputation for its influence is not significant correlation.The innovation points of this paper are:(1)scholars at home and abroad seldom study related party transactions from the perspective of senior management team background.This paper,from the perspective of CFO’s influence,studies its influence on related party transactions.(2)under the perspective of CFO influence,further distinguish the nature of the related party transactions,the CFO influence on normal related party transaction and exception if there is a difference between the influence of related party transactions,verify the CFO influence of abnormal connection transaction specification.