Role of Political Connections and Family Ownership to Related Party Transactions in Indonesia


Authors : Fuad Hudaya Fatchan; Ilham Nuryana Fatchan

Volume/Issue : Volume 8 - 2023, Issue 2 - February

Google Scholar : https://bit.ly/3IIfn9N

Scribd : https://bit.ly/3KiPnX0

DOI : https://doi.org/10.5281/zenodo.7651767

A related party transaction is a transfer of resources, services or obligations between the reporting entity and related parties, regardless of whether a price is charged. There are several factors that can influence abusive or efficient related party transactions, namely family ownership and political connections. This study discusses the effect of family ownership and political connections on related party transactions with control variables, namely audit quality, firm size, profitability and firm age. This research focuses on mining companies listed on the Indonesian stock exchange in 2016-2020 with a research sample of 170 companies. Data analysis used Eviews 9 with the Random Effect Model test. The results of the study show that family ownership and political connections have an effect on related party transactions. Control variables are audit quality, company size, company age effect on related party transactions. Profitability has no effect on related party transactions.

Keywords : Related Party Transactions, Family Ownership, Political Connections, Audit Quality, Company Size, Profitability, Company Age

CALL FOR PAPERS


Paper Submission Last Date
29 - February - 2024

Paper Review Notification
In 1-2 Days

Paper Publishing
In 2-3 Days

Video Explanation for Published paper

Never miss an update from Papermashup

Get notified about the latest tutorials and downloads.

Subscribe by Email

Get alerts directly into your inbox after each post and stay updated.
Subscribe
OR

Subscribe by RSS

Add our RSS to your feedreader to get regular updates from us.
Subscribe