Abstract:

At present, the governance of related party transactions has become the important problems faced by countries in the capital market. Domestic and foreign scholars have also conducted extensive research. The literature of related party transactions at home and abroad is reviewed and summarized. From the perspectives of “tunneling” and “propping” , the influence of related party transactions on firm value is explored and the research limitations and study fields for further development pointed out. Finally, some suggestions are made on the regulation of related party transactions of the company.

Key words: related party transactions; propping; tunneling; firm value