Related Party Transactions and Firm Value: Distributed Ownership as a Moderating Variable

Title: Related Party Transactions and Firm Value: Distributed Ownership as a Moderating Variable

Author: Nitami Galih Pangesti

Affiliations : Masters Program in Accounting, Faculty of Economics and Business, Universitas Airlangga , Surabaya, Indonesia

Publisher: Universitas Airlangga

Abstract

This research aims to test the negative influence of related party transactions on firm value and test whether distributed ownership weakens the influence of related party transactions on firm value. The data used in this research is secondary data, namely referring to data in financial reports and company annual reports obtained from the Indonesia Stock Exchange website for the 2014-2018 period. Company value is measured using Tobin's Q, related party transactions using sales transactions with related parties, and distributed ownership is measured using the hidifference variable to measure shareholder capacity. The analysis technique used is Moderated Regression Analysis (MRA). The results of this research 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/