Related Party Transactions and firm value: The role of governance mechanism

Afro-Asian J. of Finance and Accounting, 2017

2004

SSRN Electronic Journal, 2013

Review of Accounting and Finance, 2011

2019

This paper attempts to examine the impact of ownership structure on firm performance. The sample is based on BSE 200 Index companies and the study spans over a period of 15 years, from 2001 to 2015. It considers four major groups of ownership viz., Indian Promoters (IP), Foreign Promoters (FP), Non-Promoter Institutions (NPI), and Non-Promoter Non-Institutions (NPNI) and three measures of performance namely, return on asset (ROA), return on equity (ROE), and Tobin’s Q ratio (TQ). Panel data regression results shed light on the relation between ownership structure and firm performance.

ACADEMIC JOURNAL OF ACCOUNTING AND ECONOMIC RESEARCHES, 2018

Institutional ownership is an important indicator of stock investment and can have a huge impact on the behavior and behavior of companies. In this study, the effect of institutional ownership structure on the relationship between Related Party Transactions and profit management of listed companies in Tehran Stock Exchange was investigated. The research sample was 87 companies that were selected in a systematic and purposive manner. The required data were collected from the MABNA software and analyzed using Eviews econometric software. The results indicated that the institutional ownership structure reduced the relationship between Related Party Transactions and management of profits, so that both of long-term institutional ownership and short-term institutional ownership reduced the forecast of profit management through Related Party Transactions.

2021

The present study inspects the comparative effects of inside shareholding on firm value for group-affiliated firms and non-group-affiliated firms in Pakistan. The research uses the excess-value as a performance measure by employing a chop-shop approach in treatment effects regression model (TERM). The results reveal that lower level and higher level inside shareholding negatively associated with firms’ value. However, it positively relates at a moderate level. Also, inside shareholding-value relationship differs significantly for group-affiliated firms and non-group-affiliated firms. Firms with inside shareholding at lower level appear to more visible in business groups, and these firms show adverse firms’ value consistent with divergence of interest effect. Nevertheless, inside ownership firms at a higher level, namely standalone firms, negatively affect firm value with entrenchment effect. The findings also confirm non-linearity in inside shareholding-firm value relationships.

International Journal of Supply Chain Management, 2020

. Firms are involved in supply chains to achieve operative efficiency, develop strategic advantages, and generate financial profits. This study aims to examine the effect of disclosure of Related Party Transactions (RPT), the disclosure of supply chain and cost management on a firm’s value. The firm’s value is considered necessary because a high level of shareholder prosperity will follow the big firm's value. Also, supply chain management, as an agent of the company, seeks to increase the firm’s value, which is reflected in the stock market price of the companies. This research is quantitative research with multiple linear regression models. The sample used in this research is manufacturing companies listed on the Indonesia Stock Exchange (ISE). The type of data used in this study is secondary data in the form of financial statements and annual reports from 2014 to 2016. The sample selection using a purposive sampling method with the number of samples amounted to 255 samples. T...

SSRN Electronic Journal, 2003

We examine the effect of insider ownership on corporate value in India for the period of 2000-01 to 2003-04, using 1833 Bombay stock Exchange listed firms. More specifically we have investigated the nature of relationship between insider’s equity holding and firm value. While ‘convergence of interest’ or ‘monitoring’ hypothesis predicts a positive relationship, the ‘entrenchment’ hypothesis predicts a negative one between insider shareholding and firm value. In India, most of the firm’s have insiders/promoters as the dominant shareholder. The feature of family based governance system is also widely prevalent in Indian corporate sector. This paper provides evidence that the relationship between insider shareholding and firm value is not linear in nature. We document a significant non-monotonic relationship between insider shareholding and firm value. Tobin’s Q first increases, then declines and finally rises as ownership by insiders rises. Besides, we confirm that foreign promoter/co...