Case Study On Information Disclosure Of Kodak Stock Related Transactions

Related party transactions have a tendency to be generalized in the development and operation of listed companies.However,due to the characteristics of concealment and complexity of related party transactions and the imperfection of legal norms,many listed companies maliciously use related party transactions to deliver benefits to related parties,resulting in frequent scandals of related party transaction information disclosure violations.Moreover,the development and change of the organizational form of enterprises,the failure of internal control and the lax control by external regulatory agencies have all provided listed companies with opportunities for unfair related party transactions.Therefore,it is urgent to perfect the related party transaction information disclosure system.Firstly,through the reference to domestic and foreign literature,this paper understands that the number and amount of connected transactions of listed companies have a negative correlation with the effectiveness of internal control.Excessive reliance on connected transactions will sometimes affect the company's operating performance.According to the relevant theoretical analysis,this paper holds that the self-interest behavior of earnings management and the motivation to save transaction costs urge listed companies to disclose related transactions illegally.Secondly,this paper integrates the provisions of current laws,regulations,standards and exchange rules on related party transaction information disclosure.According to the disclosure principles of appropriateness,sufficiency and importance,this paper suggests that prior and ongoing information disclosure links can be added to make disclosure more timely and reliable.And appropriately expand the scope of accounting standards for related party transactions,including "potential related parties" in the definition criteria of related parties,so as to make the related party transaction information disclosure system more perfect.Finally,this paper selects the current hot related party transaction violation disclosure event of Koda shares as a sample,carefully analyzes the problems existing in the related party transaction information disclosure of Koda shares,the reasons for the false disclosure and the adverse consequences caused by the illegal disclosure,and puts forward specific suggestions to improve the related party transaction information disclosure system of Koda shares from three aspects of perfecting the rules and regulations,strengthening the external supervision and establishing a reasonable internal management mechanism.This paper uses the method of combining theory with actual cases to explore the common problems and solutions of related party transaction information disclosure of Koda shares and many listed companies in China.On the theoretical level,improving the related party transaction information disclosure system can improve the research level of related party transaction related theories and help to build a systematic knowledge framework for related party transaction information disclosure.On the practical level,maintaining the authenticity and integrity of related party transaction information disclosure can protect the legitimate rights and interests of small and medium-sized investors and help stabilize the orderly operation of the securities market.