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The impact of related party transactions on firm value

The impact of related party transactions on firm value PurposeThe purpose of this study is to address the impact of the related party transactions (RPTs) on firm value. The authors bring evidence from a usually ignored empirical setting: an African emerging market.Design/methodology/approachIn particular, the authors focus on companies listed on the Egyptian stock market using a sample of EGX 30 from 2012 to 2017.FindingsUnlike the literature, the authors find no significant relationship between RPTs and market value.Practical implicationsThis research provides insights for policymakers and other interested parties concerning the perception of RPTs in Egypt.Originality/valueThe reported different findings of this study assure the intermediary role of the context and the local culture in the relationship between RPTs and firm value, in contrast to the negative view that is mostly reported in the literature. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Journal of Financial Reporting and Accounting Emerald Publishing

The impact of related party transactions on firm value

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Publisher
Emerald Publishing
Copyright
Copyright © Emerald Group Publishing Limited
ISSN
1985-2517
DOI
10.1108/JFRA-08-2018-0064
Publisher site
See Article on Publisher Site

Abstract

PurposeThe purpose of this study is to address the impact of the related party transactions (RPTs) on firm value. The authors bring evidence from a usually ignored empirical setting: an African emerging market.Design/methodology/approachIn particular, the authors focus on companies listed on the Egyptian stock market using a sample of EGX 30 from 2012 to 2017.FindingsUnlike the literature, the authors find no significant relationship between RPTs and market value.Practical implicationsThis research provides insights for policymakers and other interested parties concerning the perception of RPTs in Egypt.Originality/valueThe reported different findings of this study assure the intermediary role of the context and the local culture in the relationship between RPTs and firm value, in contrast to the negative view that is mostly reported in the literature.

Journal

Journal of Financial Reporting and AccountingEmerald Publishing

Published: Sep 2, 2019

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