Ownership Type, Political Connections and Related-Party Transactions of Chinese Listed Firms

This is a one-year project, examining the relationship among ownership type, political connections and related-party transactions. Firstly how political connections affect related-party transactions will be investigated, then how the interaction between ownership type and political connections influences related-party transactions will be studied. Since Taiwan has a very close economic connection with China in business and investment and investors in Taiwan are very interested in Chinese capital markets, it is of great help to have a better understanding of Chinese listed firms. Specifically, we hope that the results can be helpful for investors to select investment targets in China and can be useful for Taiwanese firms while cooperating with Chinese businesses as well.The sample of this project will be selected and data will be collected from China Stock Market & Accounting Research Database, Taiwan Economic Journal Database and other sources after further literature review is conducted, better research framework and more solid hypotheses are developed. Then, Econometric methods will2be used to analyze data. Finally, the final report will be completed and this project will be concluded on time.The results in this project are expected to extend our knowledge of the relationship among ownership type, political connections and related-party transactions for Chinese listed firms and to lay the groundwork for future research as well as to have implications for business people and investors who are interested in Chinese capital markets. We will try our best to overcome any possible difficulty and to enhance our research group members’ research abilities and quality to make the best use of the subsidy.