The Impact Of Related Party Transactions On The Value Of Listed Companies

Affiliated transaction is a special transaction method used by listed companies in my country in the process of economic activities,that is,during the transaction process,by internalizing the external market,the related party reduces the transaction cost from request to signature and improves efficiency.However,related party transactions are a "double-edged sword",which has both positive and negative impacts on enterprise value.Among them,the fair connected transaction can reduce the transaction cost of the enterprise and improve the overall economic benefit of the company.Non-fair related transactions will damage the rights and interests of minority shareholders,affect the internal harmony and management of the enterprise,and reduce the value of the enterprise.This paper mainly studies the impact of related party transactions on the company’s value from the degree of occurrence of related party transactions and the fairness of related party transactions.Firstly,the current situation of related party transactions of listed companies is described and analyzed,and the analysis results show that: since 2016,the number and proportion of domestic listed companies with related party transactions has gradually increased,and related party transactions are common among domestic listed companies;The amount of related-party transactions of domestic listed companies is on the rise as a whole,indicating that domestic listed companies have more frequent related-party transactions;further sorted out the scale of related-party transactions of listed companies in the liquor industry and the entire liquor,beverage and refined tea manufacturing industry,and found related-party transactions in the liquor industry.The overall data of the amount and the number of related transactions accounted for a relatively high proportion,and the proportion showed an upward trend,indicating that the liquor industry is representative.The follow-up will focus on the analysis of the liquor companies.Next,on the basis of summarizing related concepts and theories such as related party transactions and company value,taking HW company in the liquor industry as an example,the related party transaction behavior of HW company is introduced from multiple perspectives.In the purchase and sale of related parties,it is found that HW’s profits continue to flow into the group company;in the lease of related assets and the transfer of expenses,it is found that HW has transferred interests by paying trademark use rights,lease fees and comprehensive service fees;from the perspective of dividend distribution,the huge connected transactions of HW listed companies have caused both the company’s profits and shareholder returns to be low,and the interests of small and medium investors have been seriously infringed;from the perspective of earnings management,it shows that HW has used different means in different years to manipulate profits.Finally,by comparing the data of HW company and other listed companies in the liquor industry under the same conditions and the data after the rectification of related party transactions,the research results show that the frequent related party transactions and non-fair related party transactions of HW company can have a negative impact on the company’s value,and After starting the comprehensive rectification of related party transactions,HW’s share price and yield have played a positive role in promoting.Combined with the previous theoretical basis and case analysis results,the hypothesis is put forward: related party transactions and non-fair related party transactions have a negative impact on enterprise value.In the empirical study,39 companies listed in the Shanghai and Shenzhen A-share liquor industry from 2008 to2021 were selected as the research objects,and the Tobin Q value was selected as the explained variable,the natural logarithm of the transaction amount and the natural logarithm of the number of related transactions.Numbers are explanatory variables,asset size,asset-liability ratio,operating income growth rate,agency cost,total asset turnover,separation of powers,shareholding ratio of the largest shareholder,shareholding ratio of the top 10 largest shareholders,board size and board of directors Independence is the control variable,and the degree of earnings management is the moderating variable.First,the descriptive statistics show that the sample distribution is good,and then the panel stationarity test is carried out,and it is found that the series are all stationary series,and then the correlation analysis and multicollinearity test are carried out to analyze the independence between the variables,showing that there is no To solve the problem of multicollinearity,we further use regression analysis to test the hypothesis proposed above,from the total effect and the moderation effect,respectively,and then conduct heterogeneity analysis based on the nature of the enterprise,the size of the enterprise,and whether the enterprise has two jobs in one.,and finally,the model is tested for endogeneity and robustness.In terms of empirical conclusions,from the analysis of the total effect results,it is concluded that the number of related party transactions of enterprises has a significant negative impact on enterprise value and the amount of related party transactions of enterprises has a significant negative impact on enterprise value.From the analysis of the moderating effect results,it is concluded that the number of non-fair related party transactions has a significant negative impact on enterprise value.When the level of corporate earnings management is at a high level,the number of related party transactions has a higher negative impact on corporate value.When the management ability is at a low level,the negative impact of the number of related party transactions on the enterprise value is relatively low.The amount of nonfair related-party transactions has a significant negative impact on enterprise value.When the level of corporate earnings management is at a high level,the amount of related-party transactions has a greater negative impact on corporate value.When the level of corporate earnings management is at a low level,the negative impact of related party transaction amount on enterprise value is relatively low.Finally,this paper puts forward relevant suggestions.Regarding the influence of the amount of related party transactions and the number of related party transactions,the supervision of related party transactions should pay more attention to the large amount of related party transactions rather than the number of related party transactions.Based on the related party transactions of state-owned and non-state-owned enterprises,it is proposed that the relevant departments can strengthen the supervision of non-stateowned enterprises.Based on the related party transactions of large and small enterprises,it is necessary to correctly understand related party transactions and regulate related party transactions.Based on whether the related party transactions of the two-person enterprise are combined,from the perspective of the corporate governance structure,it is possible to consider letting the director of the enterprise and the CEO serve concurrently.