Analysis On The Behavior Of Related Party Transaction Tunneling In PD Company

As an economic activity,related party transactions are inherently neutral.However,due to the existence of related parties,coupled with allowed naming own price by both parties from Company Law,related party transactions may be abused by related parties of the listed company.At the same time,in listed companies,the "tunnel behavior" whichabused by controlling shareholders to transfer assets and profits to their own hands frequently appears.The concealment of related party transactions makes it the main manifestation of tunneling behavior.Studying related party transactional tunneling behavior can better understand the controlling shareholder 's encroachment on the interests of small and medium shareholders.This article selects PD Company as the object of case analysis.The main reason is that PD Company is a typical state-owned company listed after the stock reform.Due to the characteristics of the early state-owned enterprises,there are many closely related parties left.At the same time,the PD Company has a phenomenon of dominance and frequent connected transactions.Taking the PD Company as a case object can better analyze the influence and correlation of the PD Company's shareholding structure characteristics and corporate governance decisions on related transaction tunnel behavior.The analysis of the PD Company can also better find the specific performance and risks of the company's connected transaction tunneling behavior,and escort the investment of small and medium shareholders.This paper summarizes the theoretical basis of the research on related transaction tunnel behavior by studying domestic and foreign literature,related theories and regulations.Demonstrate the company background and business performance of the PD Company and explain the specific cases of unfair related party transaction tunneling behavior.Combining the case analysis method and the event research method,we will further discuss the specific methods and effects of the largescale group's connected transaction tunneling behavior.At the same time,through the analysis of the case,it points out the main reason for the related transaction tunneling behavior.According to the reasons and the characteristics of the PD Company,reasonable suggestions are given.The analysis results show that the centralized shareholding structure has promoted the generation of tunnel behavior to a certain extent,and the company's large number of related parties,frequent related transactions and the company's business chain are complex,etc.,which may promote related transactions to become the main manifestation of tunnel behavior.The related-party transaction tunneling behavior is usually more concealed.For the complex disclosure of information,it is often difficult for small and medium shareholders to distinguish or give enough attention.The related-party transaction tunneling behavior adversely affects the corporate value of the PD Company and the stock market,infringes the interests of small and medium shareholders,and undermines the stability of the securities market.Therefore,listed companies should actively seek countermeasures based on their existing problems to prevent the adverse effects of relatedparty transactional tunneling behaviors.At the same time,they should also strengthen the company's disclosure system,protect the rights of small and medium shareholders,and maintain the stability of the capital market.