A Case Study Of Kaidi Eco's Related Transactions

With the continuous development of the securities market,related party transactions have been paid more and more attention by all parties.On the one hand,fair related party transactions can save transaction costs and improve transaction efficiency.On the other hand,under non-competitive conditions,related party transactions are also prone to unfair situations,which affect the legitimate interests of investors or creditors,especially the rights of small and medium shareholders,which forms unfair related party transactions.Since Kaidi Ecology delayed disclosing its audit report of 2017,the issue of its related transactions has attracted attention.Through describing and analyzing the problems of Kaidi Ecology in the identification of related parties,the reorganization of related parties,the occupancy of related party funds and the disclosure of related party transaction information,this paper further analyses the causes of related party transactions from both internal and external aspects,and finds that the internal reasons are mainly the failure of internal control,defects of corporate governance and blind expansion of greed.The main external reasons are the insufficiency of legal supervision and the negligence of social auditing.Next,it elaborates its harm to the company itself,small and medium-sized shareholders and creditors,as well as the securities market.Finally,it puts forward suggestions on the standardization of affiliated transactions of listed companies from the aspects of internal and external supervision.Studying the case of Kaidi Eco-related Transaction is of great significance to the listed companies as a whole,which is conducive to improving the fairness of the overall related transaction in the securities market,protecting the interests of all parties,and promoting the healthy development of the securities market.