Analysis of the Relationship between the Degree of Related Party Transactions and the Economic Efficiency of Monopoly Main Business Income

摘要

The related transaction in monopoly formed by distribution of main business causes local efficiency loss, which often overshadowed by the overall efficiency of monopoly enterprise. The paper makes empirical research on the relationship of the source of main business income and the level-of profitability, which proves that there is no linear relationship between the two, that is, enterprises with more main business are not necessarily highly-profited, while the enterprises with less main business are not correspondently low in profit. This shows that in the enterprises management has not reached optima allocation of resources, with a great deal of efficiency loss. As a result, the paper offered basic recommendations to strengthen internal controls from the macro and micro levels.