Research on the Inhibition Path of Blockchain Technology to Related Party Transactions

DOI: https://doi.org/10.62517/jbdc.202301211

Author(s)

Jiatong Han*, Shengyu Tian, Yang Bai

Affiliation(s)

Department of Accounting, Harbin Institute of Finance, Harbin, Heilongjiang, China

Abstract

With the rapid development of China's economy, related party transactions of listed companies have attracted much attention. Related party transactions are not only a legal means of earnings management of listed companies, but also a way for listed companies to cover up illegal behaviors such as tax evasion, profit transfer and profit delivery to major shareholders. How to identify and suppress related party transactions of listed companies and guarantee investors' profits? It is particularly important to promote the healthy development of financial markets. Blockchain technology has the characteristics of immutability, encryption, permanent tracking and decentralization, so that enterprises can achieve accounting tracking through the application of the technology, eliminating stakeholders' doubts about the authenticity of related party transactions. This paper introduces blockchain technology from three aspects, such as information sharing system, supervisory organization and mechanism, and demonstrates the feasibility of this technology to enhance the management level of enterprises, which is conducive to inhibiting the related party transactions of enterprises and improving the management level of enterprises.

Keywords

Blockchain; Related Party Transaction; Earnings Management; Related Party Transaction Suppression

References

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