TY - JOUR AU - Tong, Yan AU - Wang, Huacheng PY - 2008 DA - 2008/06/01 TI - Related party transactions, benefits of control and earnings quality JO - Frontiers of Business Research in China SP - 187 EP - 203 VL - 2 IS - 2 AB - Controlling shareholders pursue benefits of control (private benefits and shared benefits) via related party transactions, which result in different levels of earnings quality. Using data from all A-share listed companies in Shenzhen and Shanghai stock markets in the year 2001 and 2002, we found that when the share ratio of controlling shareholder is less than 50%, they prefer pursuing private benefits of control via related party transactions, giving rise to deterioration in earnings quality. By comparison, when the share ratio is more than 50%, controlling shareholders prefer pursing shared benefits of control through related party transactions, which improve earnings quality as a result. SN - 1673-7431 UR - https://doi.org/10.1007/s11782-008-0011-x DO - 10.1007/s11782-008-0011-x ID - Tong2008 ER -