Related‐party transactions and corporate performance following the adoption of International Financial Reporting Standards in Taiwan

Wang, Weikang; Lu, Wen‐Min; Kweh, Qian Long; Siao, Wun‐Ya

doi:10.1002/mde.3106

Cited by 7 publications

(6 citation statements)

References 37 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…Pandangan teori agensi tipe II mengungkapkan adanya konflik antara pemegang saham mayoritas dengan minoritas. Kondisi ini disinyalir bahwa pembentukan perusahaan dan menjadikannya IPO sebagai celah untuk mendapatkan manfaat bagi pemegang saham mayoritas (Huang & Kang, 2017;Kang et al, 2014;W. K. Wang et al, 2020).…”

Section: Pendahuluanunclassified

Kajian Kepemilikan Keluarga pada Perusahaan Initial Public Offering Tahun 2022 di Bursa Efek Indonesia

Gadeng,

Rusnaidi,

Zulkifli Umar

et al. 2023

arbitrase

View full text Add to dashboard Cite

This researcher aims to examine family ownership in companies that have an Initial Public Offering in 2022 on the Indonesian Stock Exchange. This study includes the characteristics of family ownership, the portion of family ownership either directly or indirectly, and the ultimate beneficial owner. This type of research is qualitative. This study observes companies that have Initial Public Offerings on the Indonesia Stock Exchange in 2022, totaling 15 companies. The data used in this study is secondary data, namely in the form of company prospectus reports published on the Indonesia Stock Exchange. The data analysis technique used is descriptive method. The results of this study found that 9 out of 15 companies that had an Initial Public Offering on the Indonesia Stock Exchange in 2022 were owned by families, either directly or indirectly. Ownership by the family, namely having the characteristics of a married couple, and siblings. The portion of family ownership dominates in the 9 companies observed, ownership is owned directly or indirectly through other companies formed. Likewise, the ultimate beneficial owner of the company is dominated by family ownership.

show abstract

Section: Pendahuluanunclassified

Kajian Kepemilikan Keluarga pada Perusahaan Initial Public Offering Tahun 2022 di Bursa Efek Indonesia

Gadeng,

Rusnaidi,

Zulkifli Umar

et al. 2023

arbitrase

View full text Add to dashboard Cite

show abstract

“…(2019) and Alhadab et al. (2020), there is no association between RPTs and firms' value, whereas Wang et al. (2020) and Hope and Lu (2020) argue that RPTs make resource transfers between affiliates more affordable and raise firm market value.…”

Section: Introductionmentioning

confidence: 99%

“…According to the transaction efficiency hypothesis, related party transactions (RPTs) improve efficiency by lowering transaction costs and improve ideal business contracts by gaining more insight into linked parties. According to Diab et al (2019) and Alhadab et al (2020), there is no association between RPTs and firms' value, whereas Wang et al (2020) and Hope and Lu (2020) argue that RPTs make resource transfers between affiliates more affordable and raise firm market value. On the contrary, the conflict of interest hypothesis argues that related parties utilize their power to expropriate corporate resources for their Market value and related party's transactions advantage, increasing agency costs and diminishing firm value (Fooladi and Farhadi, 2019).…”

Section: Introductionmentioning

confidence: 99%

Market value and related party's transactions: a panel data approach

Farhan

Almaqtari

2023

AJAR

View full text Add to dashboard Cite

PurposeThis research aims to examine the impact of RPTs and board of directors' characteristics on the market value of Indian listed banks. Further, this study evaluates the moderation effect of board composition on the association between RPTs banks’ market value.Design/methodology/approachThe sample size consists of 38 banks listed on Bombay stock exchange. The current study is based on secondary data for ten years from 2010 to 2019. Generalized Method of Moment (GMM) was used for estimating the results.FindingsSubsidiary transactions, board of directors' size, composition, diligence, promoters, remuneration and banks' size and leverage have a significant impact on the market value of Indian listed banks. Further, board of directors' composition positively moderates the association between RPTs and banks value measured by Tobin's. Furthermore, corporate governance characteristics have a significant impact on RPTs measured by total RPTs and all subsidiary transactions.Research limitations/implicationsThis research is limited only to listed banks whose data are available in the ProwessIQ database, which makes it difficult to generalize the findings on other unlisted banks. This research helps policymakers, investors and creditors to categorize RPTs into different groups to identify the harmful and beneficial once to the bank. The findings suggest that policymakers, investors and creditors should not consider all key personal transactions as harmful transactions; instead, the policymakers, investors and creditors should consider all subsidiary transactions as harmful in the absence of independent directors.Originality/valueThe present study contributes to the existing literature on RPTs by evaluating the interaction effect of board composition on the association between related party transactions and banks' value. Further, this research focuses on the financing industry; Indian banks, which has not been sufficiently researched in comparison to the non-financing industries.

show abstract

“…The literature has kept growing since Johnson et al (2000) pioneered the concept of “tunneling” and related theories. Prior studies provide evidence of effective governance channels of tunneling behaviors, such as acquisition market (Bae et al, 2002), legal environment (Atanasov, 2005), information disclosure (Cheung et al, 2006; Wang et al, 2019), institutional ownership (Jiang et al, 2010), financial constraints (Peng et al, 2011) and board structure (Cai et al, 2019; Yu et al, 2021). This study complements this literature by highlighting the disciplinary role of product market competition in deterring controlling shareholders' tunneling.…”

Section: Introductionmentioning

confidence: 99%

Product market competition and controlling shareholders' tunneling: Evidence from China

Xiao-li

Chen

et al. 2022

Manage Decis Econ

View full text Add to dashboard Cite

This paper provides evidence supporting the disciplinary role of product market competition in controlling shareholders' tunneling. We use the regulation‐induced IPO suspensions in China as shocks to product market competition. With a generalized DID design, we find that reduced product market competition threat, induced by rivals' IPO suspension, increases incumbents' inter‐corporate loans by 0.4 percentage points (pp) and the probability of committing a capital occupation violation by 3.1 pp. The effect of IPO suspension on tunneling is weakened when the product market is highly competitive and more pronounced for companies with problematic agency problems and loose governance mechanisms. Furthermore, we document a reverse effect when IPO suspensions end. This study contributes to the literature on product market competition's disciplinary role by presenting evidence supporting a plausibly causal effect of competition and controlling shareholders' tunneling.

show abstract

Related‐party transactions and corporate performance following the adoption of International Financial Reporting Standards in Taiwan

Cited by 7 publications

References 37 publications

Kajian Kepemilikan Keluarga pada Perusahaan Initial Public Offering Tahun 2022 di Bursa Efek Indonesia

Kajian Kepemilikan Keluarga pada Perusahaan Initial Public Offering Tahun 2022 di Bursa Efek Indonesia

Market value and related party's transactions: a panel data approach

Product market competition and controlling shareholders' tunneling: Evidence from China

Contact Info

Product

Resources

About