The Entrenchment Effect And Incentive Alignment Effect Of The Related Party Transaction

It is a problem that the ultimate big shareholders take out of the company's assets using related transactions.It also causes many domestic and foreign scholars' attention.According to the research of many scholars,the behavior of hollowing companies not only seriously infringes the rights and interests of small and medium shareholders,but also invade the company's own funds,which may affect the normal company.The capital chain needed for operation.But on the other hand,there are interest synergy effects in related transactions,such as helping companies to avoid taxes reasonably,and better solve the financing problems.The concern and governance of tunneling in China is relatively late.At present,the market environment is not strong enough to constrain tunneling.In most of the companies under the ownership structure of Pyramid,a lot of related transactions are based on the purpose of encroachment of the assets of the company.Therefore,how to find out the governance measures of the hollowed related transactions from the essence of the study of the tunneling of related transactions is very critical.At the same time,the current academic discussion of interest synergy in related transactions is not abundant.On the basis of scholars' research,it is more persuasive to analyze the synergy effect of related transactions with specific cases.In this paper,on the basis of a summary of relevant studies on the hollowing behavior and synergy effect of related transactions,this paper summarizes the review of the research on related transactions.On this basis,two different cases of hollowing effect and benefit synergy are selected as the research object,and how the hollowing means and its impact on the company and the related transaction under the synergy effect are analyzed to help enterprises to solve the current financial difficulties.This paper takes Xinhua medical and *ST Hua Ze as samples.The study found that the related transactions adopted by the ultimate controller of the Xinhua medical service were mostly in the perspective of the whole company group,promoting the strategic transformation of the company and better solving the financing problem;the*ST Hua Ze's ultimate controller used more related transactions to empty the company,seriously damaging the company.The rights and interests of small shareholders.Combined with theoretical analysis and case analysis,this paper puts forward solutions and solutions to the hollowing effect of related transactions,helping the company to play a better role in the interests of related transactions and protect therights and interests of small and medium-sized shareholders.