Title: Related Party Transactions and Firm Value: Distributed Ownership as a Moderating Variable
Author: Nitami Galih Pangesti
Affiliations: Master of Accounting Program, Faculty of Economics and Business, Universitas Airlangga , Surabaya, Indonesia
Publisher: Universitas Airlangga
Abstract
This study aims to examine the negative influence between related party transactions and firm value and to examine whether distributed ownership weakens the influence of related party transactions on firm value. The data used in this study are secondary data, namely referring to data in financial reports and annual reports of companies obtained from the Indonesia Stock Exchange website for the period 2014-2018. Firm value is measured using Tobin's Q, related party transactions using sales transactions with related parties, and distributed ownership is measured using a hidifference variable to measure shareholder capacity. The analysis technique used is Moderated Regression Analysis (MRA). The results of this study indicate that (1) related party transactions have a negative effect on firm value and (2) distributed ownership weakens the influence of related party transactions on firm value.
Keywords: related party transactions, company value, distributed ownership
Sources: http://repository.unair.ac.id/94551/