The Impact Of Related Parties Transactions To Market Valuation Of Firms For Manufacturing Companies Listed In Indonesia Stock Exchange (idx) On 2009-2011

JAYANTHI, NIKI (2012) The Impact Of Related Parties Transactions To Market Valuation Of Firms For Manufacturing Companies Listed In Indonesia Stock Exchange (idx) On 2009-2011. [Undergraduate thesis]

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Official URL: http://digilib.ubaya.ac.id/pustaka.php/233330

Abstract

The bankruptcy of big companies like Enron, Adelphia Communications, and others got people attention about accounting scandals. Those scandals happened because companies lack of related parties’ transactions disclosure. As information asymmetry existed in related parties’ transactions, those transactions are seen as the representation of management opportunistic behavior. After all the scandals were covered, investors assumed that related parties’ transactions connected to opportunistic transactions that will affect market valuation of firms. Purpose of this research is to examine the impact of related parties’ transactions to market valuation of firms. In this research, market valuation of firms is proxied by Tobin’s Q, market value of equity and annual shareholders’ return. The used population is all manufacturing companies listed in Indonesia Stock Exchange on 2009-2011. Sample collection technique is probability sampling – restricted or complex probability sampling. Independent variable is dummy variable which showed the existence of related parties’ transactions in companies (RPTYPE). While, dependent variables are Tobin’s Q (Q), market value of equity (MVE) and annual shareholders’ return (RET) as the proxy of market valuation of firms. Result of this research are (1) related parties transactions gives no impact to market valuation of firms by using the proxy of Tobin’s Q; (2) related parties’ transactions influence the market valuation of firms by using the proxy of market value of equity and annual shareholders’ return.

Item Type: Undergraduate thesis
Subjects: H Social Sciences > HG Finance
Divisions: Faculty of Business and Economic > Department of Accounting
Faculty of Business and Economic > Department of Economic
Faculty of Business and Economic > Department of Management
Depositing User: Hari Subagijo 201031
Date Deposited: 14 Apr 2014 03:32
Last Modified: 14 Apr 2014 03:32
URI: http://repository.ubaya.ac.id/id/eprint/10629

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