What affects related party Transaction? Evidence from Public Listed Companies in China and the U.S.

Sammanfattning: This study aims to find out the factors that could affect a firm’s RP transactions considering different social situation, extent of economic development and other culture factors. We examine related party transactions of the listed companies in China which stands for the emerging markets and in the U.S. which stands for the developed markets. We expect the conclusion that factors such as firm size, debt ratio, corporate governance, industry are all highly correlated with firm’s related party transaction.