Product market competition,ultimate controlling structure and related party transactions

• 作者: Kun Wang Shenglan Chen Xiaoxue Li
• 来源期刊: 中国会计学刊：英文版
• 学科: 经济
• 关键词: PRODUCT MARKET COMPETITION OWNERSHIP STRUCTURE Ult
• 年，卷（期）: 2012,（4）
• 页码范围: 293-306
• 页数: 14页
• 分类号: F274

摘要

Previous studies have shown that product market competition has an important effect on corporate strategies and internal governance mechanisms. Using a sample of China’s listed firms from 2004 to 2009, we explore the relationship between product market competition and normal related party transactions and find a significant positive relationship. In addition, we investigate the substitutive effect of product market competition and the cash flow rights owned by ultimate controlling shareholders on the extent of normal related party transactions. In particular, our results suggest a positive relationship between the ultimate controlling shareholders’ cash flow rights and normal related party transactions that is strongest in noncompetitive industries and weakens as product market competition increases.